Superfund Accounts Receivable: Collection Actions for Delinquent Accounts

Transcription

1 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C MEMORANDUM August 20, 2002 SUBJECT: Superfund Accounts Receivable: Collection Actions for Delinquent Accounts FROM: Barry Breen, Director /Signed/ Office of Site Remediation Enforcement Joseph Dillon, Comptroller /Signed/ Office of the Chief Financial Officer TO: Superfund Legal Branch Chiefs, Regions I - X Superfund Program Branch Chiefs, Regions I - X Comptrollers, Regions I - X I. Introduction This guidance supersedes the Agency s interim guidance entitled Delinquent Accounts Receivable: Interim Guidance on the Referral Process and Timing for Collection of Delinquent Debts Arising under Superfund Judicial or Administrative Settlements, OSRE, OCFO (Apr. 6, 2000). The guidance retains the basic referral and collections procedures from the interim guidance, and addresses additional areas, including: judgments, bankruptcies, interest, and stipulated penalties. The guidance includes numerous appendices to assist Regions in their Superfund enforcement collection efforts. Appendix A is a flowchart of the collections process, appendix B summarizes the guidance, appendices C-I contain sample/model documents and enforcement and referral information, and appendix J lists selected guidance documents relating to the referral, collection, and compromise processes. 1 This guidance is intended solely for use by employees of EPA. It is not a regulation and does not impose legal obligations. EPA will apply the guidance only to the extent appropriate based on the facts. 1 This guidance will be proposed for publication on EPA s internet WebSite: and EPA s internal WebSite:

2 TABLE OF CONTENTS Page Section I - Introduction... 1 Section II - Background... 3 Section III - Processing of Superfund Accounts Receivable... 3 A. Timely Identification and Processing of Overdue Accounts Receivable... 3 B. Accounts Receivable Arising from a Sum Certain due on Date-certain Payments Due under Judicial Agreements and Court Ordered Judgments Payment Due from a Party in Bankruptcy Proceedings Payment of Past Costs under CERCLA Section 122(h) Administrative Agreements and Administrative Orders on Consent... 8 C. Accounts Receivable Arising from Future Response Cost Bills Collecting Unpaid Future Response Costs The Dispute Resolution Process D. Collecting Interest on Late Payments E. Assessing and Collecting Stipulated Penalties F. Delinquent Accounts Receivable Arising under De Minimis Settlements Section IV - Conclusion II. Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H -- Appendix I -- Appendix J -- Background Flowchart of Collection and Referral Process Guidance - Quick Reference Sample Memorandum of Understanding Notice of Non-Compliance Letter (Revised -- two versions) Directory of Financial Litigation Units EPA and DOJ Bankruptcy Contacts Model Cover Letter for Claims Collection Litigation Report ( CCLR ), CCLR Form & Instructions Referral Requirements for Judicial and Administrative Actions Model Future Response Cost Bill and Documentation Forms List of Selected Superfund Accounts Receivable Documents 2

3 The timely collection of Superfund accounts receivable remains a high priority for EPA. 2 EPA, in conjunction with the Department of Justice ( DOJ ), continues to evaluate the entire account receivable process, including billing, collection, compromise/termination, and data reconciliation between EPA s Integrated Financial Management System ( IFMS ) and DOJ s tracking systems. 3 Headquarters is supporting these efforts through regional visits, quarterly meetings with DOJ, national meetings, the issuance of guidance documents, and periodic accounts receivable status reports. Sound fiscal policy and effective program management require the Agency to continue monitoring and emphasizing the timely processing of outstanding Superfund accounts receivable in order to maximize the return of recovered money to the Trust Fund so that it is available for future cleanups and to ensure that debt portfolios remain current. Since the interim referral and debt collection guidance was issued in April 2000, EPA has gained experience in the processing and handling of delinquent accounts. The Agency has issued guidance on the compromise and termination of Superfund debts and a Senior Resource Official pilot performance measure to evaluate the timely processing of delinquent Superfund debt throughout the dispute resolution, referral, collection, and compromise processes. 4 EPA is also revising Chapter 14, Superfund Accounts Receivable and Billings, of the Resource Management Directives System 2550D which will incorporate changes to the Superfund accounts receivable collection and compromise processes. III. Processing of Superfund Accounts Receivable 5 A. Timely Identification and Processing of Delinquent Accounts Receivable At a minimum, Regions should perform monthly reviews (i.e., every 30 days) of their accounts receivable to determine whether any accounts are delinquent. Most Regions find it helpful to perform reviews more frequently, and in some Regions reviews are performed on a daily, weekly, or bi-weekly basis which helps to reduce the time between when a delinquency occurs and when it is identified for follow up enforcement action. When a payment is overdue on a sum-certain, date-certain debt arising under a judicial 2 See Improving Superfund Fiscal Management, Accounting and Cost Recovery, OECA, OSWER, OCFO (Sept. 29, 2000). 3 As part of the reconciliation process, Regions are urged to keep the status of their accounts receivable current in IFMS. 4 See Compromise and Termination of Collection Activity of Debts Arising out of Superfund Judicial and Administrative Settlements and Judgments (Post-Settlement and Post Judgment Superfund Debts), OSRE, OCFO, DOJ-ENRD (Oct. 2, 2001) ( Compromise Memo ) and Implementation of the pilot Senior Resource Official Performance Measure on Superfund Debt Collection, OSRE, OCFO (Sept. 25, 2001). 5 This memorandum does not address debts arising under CERCLA Section 120, State Superfund Contracts, or contractor overpayments. For more information on the types of Superfund accounts receivable, see Chapter 14, Superfund Accounts Receivable and Billings, RMDS 2550D (1990). 3

4 agreement or court ordered judgment, 6 DOJ should automatically seek to enforce and collect debt. Where necessary, the Region may want contact the Financial Litigation Unit ( FLU ) of the pertinent United States Attorney s Office ( USAO ) to determine the status of the overdue account. In other cases of delinquent Superfund accounts (e.g., debts arising under administrative settlements, oversight bills) the Regions should issue the debtor a Notice of Non- Compliance letter ("Non-Compliance letter") (see revised letter, Appendix D) within fifteen (15) days of identifying the delinquent account, unless the receivable is the subject of dispute resolution as provided in an underlying agreement (or other resolution process, e.g., bankruptcy). In general, the Non-Compliance letter should advise the party that payment is due immediately, interest is accruing, penalties may be due, and that EPA will refer any delinquent amounts to DOJ for collection if not paid within thirty (30) days from the date of the letter. 7 If payment is not received within thirty (30) days, then the Region should refer the case to either DOJ s Environment and Natural Resources Division ( ENRD ) or the National Central Intake Facility ( NCIF ) which coordinates collection cases for the FLUs. 8 The referral should be sent no later than thirty (30) days after the payment due date in the Non-Compliance letter. Regions may wish to revise an existing (or develop a new) internal memorandum of understanding (MOU) that delineates responsibilities for handling Superfund accounts receivable among the finance, program and legal offices to enhance the timely processing of accounts receivable. Appendix C is an example of a Regional MOU for coordination purposes. 6 Generally, a consent decree identifies a specific amount ( sum-certain ), due by a specific date ( datecertain ) that a party has agreed to pay EPA. For example, a party s agreement to pay EPA s past response costs is a sum-certain, date-certain debt (as opposed to a promise to pay future response costs ). A court ordered judgment also identifies a specific amount of EPA response costs, but may not include a date-certain for payment. 7 If a party claims it has an inability to pay the debt, the Region should immediately issue a CERCLA Section 104(e) request for financial information to determine the debt s collectibility. The Region should evaluate this information prior to referring the debt to DOJ for collection. If a party fails to respond to the Section 104(e) request or EPA determines that the party is able to pay, then the Region should refer the case to DOJ for collection within thirty (30) days of the party s failure to respond or EPA s determination that the party is able to pay. If a party does demonstrate an inability to pay, then the Region should refer to the Compromise Memo (see n. 4). 8 See Sections B & C of this memorandum. Administrative sum-certain, date-certain debts of $1 million or less are referred to the NCIF and the FLU. All other debts are referred to DOJ-ENRD. 4

5 B. Accounts Receivable Arising from a Sum-certain Due on a Date-certain 1. Payments Due under Judicial Settlements and Court Ordered Judgments a. Judicial Settlements When a consent decree is negotiated prior to filing the complaint, 9 EPA simultaneously refers the underlying claim with the consent decree to ENRD for lodging with the appropriate court. ENRD files the complaint, which triggers the jurisdiction of the court, and simultaneously lodges the consent decree with the court. After notice and an opportunity for public comment, and assuming no changes were required as a result of public comment, ENRD moves for entry of the consent decree by the court. Consent decrees also can be negotiated, lodged and entered in cases that are already pending in court and over which the court has existing jurisdiction. Sum-certain, date-certain payments arising from a consent decree (e.g., past cost payments) are generally electronically transferred to the appropriate United States Attorney s Office. See Memorandum of Understanding Between the United States Environmental Protection Agency and the United States Department of Justice on Procedures for Remittance of Superfund Debts through the Department of Justice Lockbox System, February 13, 1992 ( MOU ). 10 Nonpayment by a settling party triggers enforcement and collection efforts by the FLU without further notice from EPA. The USAO monitors the payment due dates and ensures that appropriate follow up action is taken to collect amounts due, including any interest accruals. DOJ has agreed to contact EPA if payment is not received within 30 days of the due date. 11 Where necessary, Regions may wish to periodically contact the appropriate FLU to determine the status of DOJ enforcement actions with respect to a delinquent account in this category. DOJ-ENRD s thirty (30) day consent decree tracking report for CERCLA identifies when a decree is lodged, published, and entered. The Region s Financial Management Office ( FMO ) receives this report. The Region can use the report to anticipate when a consent decree will become effective and to ensure timely receipt of the entered decree and establishment of an account receivable by the FMO. 1990). 9 See Pre-Referral Negotiation Procedures for Superfund Enforcement Cases, OECM, OSWER (Oct. 12, 10 If a consent decree provides that payment will be sent to the EPA lockbox, then the Region should call the Headquarters staff listed at the end of this memorandum for assistance. 11 MOU at 8. DOJ also provides quarterly reports to EPA s Financial Management Division on the status of all debts for which the Unites States Attorney s Office is responsible. The reports are available on EPA s internal internet WebSite: An updated directory of all FLUs is attached to this guidance (see Appendix E). 5

6 b. Court Ordered Judgments When DOJ files an action against a responsible party to recover the United States response costs, the court will determine the liability of the party. If the party is found liable for the government s response costs, the court enters a judgment in favor of the United States. The judgment identifies a sum-certain owed by the party to the United States. A judgment sometimes requires payment by a date-certain. EPA creates an account receivable in IFMS based on the court s entry of the judgment and order to pay. The responsibility for enforcement of an unpaid judgment resides with DOJ. The Executive Office for the U.S. Attorneys ( EOUSA ) and the NCIF track amounts specified in entered judgments. A delinquency on a scheduled payment should trigger Key Points: Sum-Certain, Date-Certain Debts The U.S. Attorney s Office monitors payment due dates and ensures that appropriate follow up action is taken to collect amounts due. A party has 60 days to appeal a judgment from the date it is entered. Where necessary, EPA should contact the pertinent FLU to determine the status of DOJ enforcement actions. enforcement and collection efforts by the appropriate U.S. Attorney s Office. 12 If the account receivable is not paid within sixty (60) days after the date that the judgment is entered and the party has not appealed the judgment within those sixty (60) days, EPA, where necessary, should contact the pertinent USAO to determine the steps being taken to enforce the judgment (e.g., a writ of execution). 2. Payment Due from a Party in Bankruptcy Proceedings 13 When a settling party or potentially responsible party ( PRP ) files for bankruptcy, the standard procedures for pursuing collection of a debt no longer apply. EPA must comply with the process set forth in the Bankruptcy Code, 11 U.S.C , and the Bankruptcy Rules of Procedure. The automatic stay of Section 362(a) of the Bankruptcy Code, 11 U.S.C. 362(a), prohibits debt collection activities outside the bankruptcy process, including execution on a money judgment, garnishment, and the filing of a lien. Violations of the automatic stay may be punishable by a contempt judgment See Memorandum from Barry Breen, Director, OSRE to Lynne Halbrooks, Principal Deputy Director, EOUSA (Mar. 30, 2001) and letter response from Ms. Halbrooks, EOUSA (May 29, 2001)(agreeing to aggressively pursue delinquent debts on EPA s behalf). 13 For more information on EPA s participation in bankruptcies, see Guidance on EPA Participation in Bankruptcy Cases, OECA (Sept. 30, 1997). 14 The police and regulatory exceptions to the automatic stay do permit EPA to obtain judgments against debtors to secure their liability, but EPA cannot collect money judgments outside of the bankruptcy process. 6

7 The first step to pursuing collection in a bankruptcy case is filing a proof of claim. 15 To collect against a party in bankruptcy, EPA, in almost all cases, must request DOJ to file a proof of claim against the debtor in the bankruptcy proceeding. In some instances, EPA s claim may be based upon a pre-existing consent decree, judgment, administrative agreement, or Administrative Order on Consent ( AOC ) where the debtor is already legally required to pay the government s response costs or civil penalties, and an account receivable has already been established. Collection action on the receivable would be subject to the automatic stay mentioned above. In most cases, however, EPA files a claim against a debtor/prp where the amount of future response costs is based upon an rough estimate, and no final allocation among multiple PRPs has been made. 16 When the proof of claim is filed for this type of claim (as opposed to where the Agency has a pre-existing account receivable), the FMO should record a memo entry for the claim amount in the 9000 series general ledger accounts of the IFMS. Because legal liability has not been formally determined through a settlement agreement or other binding document, and due to the uncertainty of recovering the claim amount, the amount claimed should be recorded and tracked by the Agency as a memo entry. Once the proof of claim is properly filed, the underlying claim is considered valid unless the debtor, trustee, or other party in interest files an objection. In some cases, the government may reach a settlement with the debtor during the bankruptcy process where the Key Points: Bankruptcy The automatic stay in the bankruptcy code prohibits EPA debt collection activities. Unless EPA s claim is based on a pre-existing account receivable, a memo entry is made in IFMS when EPA files its proof of claim. Once the court approves a final bankruptcy plan, and EPA s claim is resolved, the memo entry will be eliminated and an account receivable for the amount of the claim shall be recorded within IFMS. Payment on claims usually occurs at the end of the process and often years after the proof of claim was filed. EPA should contact DOJ if it is unsure of the status of a bankruptcy case. United States agrees to accept a reduction in the amount of its claim and the debtor agrees not to object to the claim as modified. Once the court approves a final bankruptcy plan, and EPA s claim is resolved, the memo entry will be eliminated and an account receivable for the amount of the claim shall be recorded within IFMS. If it is believed that a portion of the claim will not be received by the Agency, this amount will be recorded in IFMS as an allowance for doubtful accounts. Recording an allowance for this amount will provide a fairer representation of what the Agency can expect in the form of a collection. Payment on claims usually occurs at the end of the bankruptcy process, often years after the bankruptcy case was filed. In some cases, there is no money to be paid to general unsecured creditors, and EPA receives nothing on account of its claim. In other cases, creditors will pay only a portion of their claim on a pro rata basis. It is difficult, if not impossible, to predict the ultimate payout in most bankruptcy cases. 15 EPA does not file a proof of claim in every bankruptcy case. For more information on what factors EPA considers in deciding when to file a proof of claim, please review the Bankruptcy Guidance mentioned in n In the absence of a final allocation, EPA files its claim based upon joint and several liability for all unrecovered response costs incurred or costs to be incurred at a site against a debtor PRP. 7

8 To determine the status of a bankruptcy proceeding, the Regional financial management office should contact the Regional enforcement office (usually the legal office) responsible for coordinating with DOJ on the case. If necessary, the enforcement office can contact DOJ to determine the status of the bankruptcy case Payment of Past Costs under CERCLA Section 122(h) Administrative Agreements and Administrative Orders On Consent Section 122 provides EPA with broad authority to enter into Superfund agreements. Section 122(h) specifically provides EPA with authority to enter into administrative agreements for recovery of costs, and subsection 122(h)(3) requires delinquent claims to be referred to the Attorney General. 18 Examples of accounts receivable that may be established pursuant to Section 122(h) authority include: payments arising from a Section 122(h) past costs or cashout agreement or AOC; future response cost payments (e.g., oversight) arising from AOCs for removal actions issued under the authority of Section 122; or an AOC with a past cost payment provision and a future response cost payment" provision. When a Region identifies a delinquent account receivable created from a sum-certain, date-certain obligation (e.g., past cost payment) in a Section 122(h) administrative agreement or AOC, the Region should issue the debtor a Non-Compliance letter as identified in Section III(A) above. If the debtor fails to make the required payment, then the debt should be referred to DOJ for collection based on the following criteria: Where the unpaid principal amount is equal to or less than $1,000,000 (exclusive of interest, costs, or penalties), the debt should be referred using the Claims Collection Litigation Report ( CCLR ) to the NCIF, 19 which will forward it on to the appropriate FLU; and Where the unpaid principal amount is over $1,000,000, the debt should be referred to DOJ-ENRD Each Region has a bankruptcy coordinator who ensures that bankruptcy notices are distributed to appropriate persons in the Region while multi-regional bankruptcy cases are coordinated by EPA Headquarters. Appendix F is a list of EPA and DOJ bankruptcy contacts. 18 See also Guidance on Administrative Response Cost Settlements under Section 122(h) of CERCLA and Administrative Cashout Settlements with Peripheral Parties under Section 122(h) of CERCLA and Attorney General Authority, OSRE, DOJ-ENRD, V (Sept. 30, 1998) (EPA refers 122(h) cases to DOJ for collection based on Section 122(h)(3)). 19 NCIF s address is in the attached FLU directory. Please use the attached Model Cover Letter and model CCLR form with accompanying instructions (Appendix G). 20 Please follow the outline of referral requirements for judicial and administrative actions in Appendix H. 8

9 When using the CCLR remember to fill in line #66 (i.e., the box on the USAO acknowledgment form of the CCLR) with an EPA contact name and address so the Region can receive timely notification of when a claim was received by DOJ. If you do not hear back from the FLU within a reasonable time (e.g., 30 days) about a referred debt, please contact the pertinent FLU or follow up with one of the EPA staff listed at the end of this guidance. C. Accounts Receivable Arising from Future Response Cost Bills 1. Collecting Unpaid Future Response Costs Consent decrees, administrative agreements and AOCs entered into for the performance of response action generally have a future response cost reimbursement provision (e.g., oversight) that requires the settling party to pay EPA s future response costs. The Regional FMO creates the account receivable when EPA determines the amount due and prepares and sends a bill to the settling parties. A model future response cost bill is attached as Appendix I. Typically, a party will have thirty (30) days after receipt to pay the bill and, under the terms of most settlements, the party will have the right to dispute all or a portion of the bill within that same thirty-day period. To properly invoke dispute resolution over future response costs, a party must meet certain conditions of the settlement. For example, the Model RD/RA Consent Decree 21 requires that a party: 1) invoke dispute resolution during the payment period (usually through written notification to the Agency); 2) rely on a proper basis for the dispute (i.e., accounting error, NCP inconsistency); and 3) pay EPA the amount of undisputed costs and place disputed amounts into an interest-bearing escrow account. 22 Key Points: Future Response Cost Bills Regardless of value, all delinquent future response cost bills, including those arising under an AOC or administrative agreement, are referred to DOJ-ENRD for enforcement. A party typically has until thirty (30) days after receipt to pay the bill. When a party fails to pay a bill and to timely invoke dispute resolution, EPA should issue a Non- Compliance letter that gives the party an additional fourteen (14) days to either pay the bill or invoke dispute resolution. When a party invokes dispute resolution, the Region s internal procedures should ensure that all appropriate offices (e.g., legal, program, and finance) are notified. Disputes over costs should be completed within 90 days (except where appealed) and referred to DOJ-ENRD within 30 days after the due date in EPA s final administrative decision. 21 See Final Revisions to the Model RD/RA Consent Decree, OSRE, DOJ, (June )( Model RD/RA Consent Decree ). 22 Section XVI, 56(a) of the Model Consent Decree. In most cases, a party s failure to place money into an interest-bearing escrow account should prevent the party from disputing unpaid costs and should subject the party to an EPA enforcement action. For additional guidance on disputes over future response cost bills, See CERCLA Future Response Costs: Settlement, Billing and Collection, OSRE-RSD (June 20, 2002). 9

10 If the party fails to pay the future response cost bill and does not properly invoke dispute resolution, then EPA should issue a Non-Compliance letter as prescribed in Section III(A) above. The letter, however, should give the party an additional fourteen (14) days to pay the bill or to invoke dispute resolution. A copy of the notice should be sent to the coordinating regional offices (e.g., finance, legal, program, etc.). If the party still fails to pay the amounts owed or to invoke dispute resolution, then the Region should refer the case to DOJ-ENRD within thirty (30) days from the date of the Non-Compliance letter. Please follow the outline of referral requirements for judicial and administrative actions in Appendix H. 2. The Dispute Resolution Process Most consent decrees, administrative agreements or AOCs with a future response cost section provide that when a settling party disputes costs in a bill and properly invokes the dispute resolution provision, a period of informal negotiations begins. If the dispute is not resolved informally, a period of formal negotiations begins. Formal negotiations end when EPA issues a final administrative decision. Consent decrees generally provide a right to review EPA s final administrative decision by the associated district court while administrative agreements do not. 23 Settlements vary on how long the dispute resolution process may take (i.e., from the beginning of informal negotiations to the date EPA issues its final decision). Regions also vary in their methods of resolving disputes. For example, some Regions move quickly from informal to formal negotiations while others extend informal negotiations. In some cases, unresolved disputes over an initial bill are consolidated with disputes over costs in future bills, leaving the Agency with lingering unpaid future response costs. In some cases, these costs may be wrapped into negotiations over past costs during a subsequent stage of clean up negotiations. The Agency s proposed time line for handling disputes of future response costs is shown below. Bill Dispute Invoked Written Final EPA Sent Money Escrowed Position Decision v v v v * * Informal Negotiations * Formal Negotiations * 30 days (90 days to negotiate) 120 days The Agency s goal continues to be that the entire administrative dispute resolution process (i.e., informal through formal to a final EPA decision) should not exceed ninety (90) days from when the settling defendants invoke the dispute resolution process. By not extending informal negotiations and limiting the negotiations to the period agreed upon in the settlement, the Region keeps the dispute actively moving toward resolution. Formal negotiations lead to a final administrative decision by EPA. 23 Compare Model RD/RA Consent Decree, XIX, 76(a) with Revised Model Administrative Order on Consent for Removal Actions, OSRE, XVI, (July 9, 2001). 10

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12 EPA s final administrative decision should include: The resolution of the dispute, including a justification of EPA s position; The amount of money owed (e.g., principal, interest, penalties), if any; The date payment is due, if applicable; and A statement that the matter will be considered delinquent and referred to DOJ for collection if not paid by the payment due date provided in the final decision or if not properly appealed (if provided by the terms of the consent decree). If EPA s final decision requires the settling party to pay all or part of the disputed costs, and the party fails to pay those costs or, where permitted, fails to appeal to a district court, then the Region should refer the debt to DOJ-ENRD for collection within thirty (30) days after the payment due date provided in the final decision. If a party does appeal EPA s decision to the court, then DOJ-ENRD and EPA will coordinate the government s response to the appeal. D. Collecting Interest on Late Payments When a payment owed pursuant to a consent decree, AOC or administrative agreement is not timely received, interest begins accruing based on the terms of the settlement. For example, in EPA s Model RD/RA Consent Decree, a party must pay EPA s past response costs within 30 days of the effective date of the decree (i.e., typically the date the decree is entered by the court). If the payment is not made within the 30 day period, interest begins to accrue on the effective date of the agreement. For future response costs, payment is to be made within 30 days of the Settling Defendants' receipt of the bill. If payment is not made within the 30 day period, interest on a late payment begins to accrue on the date of the bill. Interest accrues through the date of payment. See Model RD/RA Consent Decree, XVI, 57. Key Points: Collecting Interest on Late Payments The language of the settlement determines when interest accrues on a late payment. Where a balance remains because of a late payment, the Region should consider whether to write-off the remaining balance or to immediately contact the party and request payment. Any interest that accrues from a late payment by a party becomes part of the account receivable, though identified on a separate line. Most likely, a late payment will not include accrued interest. Because EPA s policy is to apply the payment first to interest and second to principal, a small portion of the principal balance may remain unpaid. If a balance remains on an account receivable due to interest accrual from a late payment, then the Region should determine whether to write-off the remaining balance using the procedures of the compromise memo (See n. #4) or to immediately contact the party and request payment (stipulated penalties may have also accrued during the period of non-payment). If the remaining balance is not paid when demanded, and the Region determines that collection of the unpaid amount is warranted, it should follow the applicable referral procedures outlined in this guidance. For example, claims arising under consent decrees would be automatically handled by the pertinent USAO while claims arising under administrative agreements or AOCs would be referred to DOJ. 12

13 E. Assessing and Collecting Stipulated Penalties EPA policy requires consent decrees to include a stipulated penalty provision in the decree. 24 EPA administrative agreements and AOCs typically contain a stipulated penalty provision as well. Thus, depending on the language of the decree, AOC, or administrative agreement, stipulated penalties may be triggered when the settling party fails to comply with an obligation of a consent decree or administrative agreement, including the failure to pay EPA s response costs. For example, EPA s Model RD/RA Consent Decree and Model Administrative Order on Consent for Removals ( Model AOC for Removals ) specifically identify due dates for payments as compliance milestones which should be subject to a stipulated penalty. 25 Key Points: Assessing and Collecting Stipulated Penalties Depending on the language of the settlement, stipulated penalties may be triggered when the settling party fails to pay EPA s response costs. The unpaid stipulated penalty is referred to DOJ with the delinquent account receivable that arose from a party s initial nonpayment. Based on the language of the settlement, stipulated penalties may accrue automatically when a violation occurs. Thus, if a settling party makes a late payment or fails to pay all or part of a future response cost bill, the Regional FMO should check with its legal enforcement office to determine if stipulated penalties were triggered. When EPA assesses penalties and, in coordination with DOJ, issues a subsequent demand for payment of the stipulated penalties, the Regional FMO typically modifies the existing account receivable to include the newly established penalty amount. If a party fails to pay the demand for stipulated penalties within the time provided by the settlement (usually payment is due within thirty (30) days after EPA issues its demand), the Region should refer the delinquent account receivable (which includes the stipulated penalty) to DOJ. The referral should follow the procedures in this guidance, e.g., administrative sumcertain, date-certain debts of $1 million or less are referred to the FLU via the NCIF while all other debts are referred to DOJ-ENRD. If the Region believes that a compromise or write-off of the stipulated penalty account receivable may be appropriate, it should refer to the compromise memo for guidance (see n. 4). 24 For a discussion on the use of stipulated penalties in consent decrees, see Guidance on the Use of Stipulated Penalties in Hazardous Waste Consent Decrees, OECM, OSWER# b (Sept. 21, 1987). See also CERCLA Section 121(e)(2). If compromising stipulated penalties, see "Revisions to OECA Concurrence and Consultations Requirements for CERCLA Case and Policy Areas," OECA, OSRE, III(C)(1)(e), at 10, (9/30/98). 25 See Section XX, 79(b)(1) of the Model RD/RA Consent Decree and Section XVIII, 47(b) of the Model AOC for Removals. 13

14 F. Delinquent Accounts Receivable Arising under De Minimis Settlements Regions should refer delinquent accounts receivable arising under Section 122(g) administrative de minimis agreements to DOJ for collection. Section 122(g)(4) provides that, [t]he district court for the district in which the release or threatened release occurs may enforce any such administrative order. Regions should use the same referral procedure for administrative de minimis agreements that is followed for administrative settlements as set forth in Section III(A) & (B)(3) above. 26 Thus, a delinquent account receivable should be referred to DOJ-ENRD or the NCIF for collection after a Notice of Non-Compliance letter (See appendix D (de minimis version)) has been issued and payment has not been made. When deciding whether to refer the case to DOJ-ENRD or to the NCIF, Regions should consider a de minimis party s financial ability-topay (see n. 7). In other de minimis cases, the Region may decide that Key Points: Delinquent Accounts Receivable Arising under De Minimis Settlements Regions should follow the same referral procedure for de minimis administrative agreements that is followed for Section 122(h) sumcertain, date-certain administrative settlements. Regions should consider a de minimis party s ability-topay (see n. 7) and the value of the account receivable when deciding whether to refer the case for enforcement and collection. enforcement, though possible, is not a viable option because of the limited enforcement value in pursuing the de minimis party, e.g., the claim is small, the party is marginally viable, and enforcement of the claim would not likely further the Agency s enforcement policy. 27 Once the Region determines that the party cannot afford to pay its existing obligation or enforcement of the claim is not in the best interest of the Agency, then the Region should refer to the Compromise Memo for guidance on compromising or terminating the debt (see n. 4). 28 IV. Conclusion Regional FMOs should continue to work closely with their counsel, program and enforcement counterparts to ensure the proper disposition of delinquent Superfund accounts receivable. FMOs should immediately advise the legal and program offices when a receivable becomes delinquent and request that the assigned staff initiate collection/enforcement action to resolve the outstanding debt. If you have any questions about this guidance, please contact Benjamin Lammie of OSRE ( ) or Vincent Velez of FMD ( ). Attachments 26 Delinquent accounts receivable arising from de minimis consent decrees should be handled as provided in Section III(B)(1) (i.e., contact the appropriate DOJ office as necessary). 27 In some cases, the Region may want to notify the de minimus party in writing that its failure to make the promised payment and to comply with the terms of the de minimis agreement renders that agreement null and void. Thus, the de minimis party loses any contribution protection, no longer receives EPA s covenant not to sue, and, where applicable, may be subject to a private contribution lawsuit. 28 For guidance concerning the referral of claims arising under unilateral administrative orders or prospective purchaser agreements, please contact Headquarters. 14

15 bcc: Maryann Froehich, OC Juliette McNeil, FMD Sandra Connors, RSD Paul Connor, PPED William Cooke, FMD Vince Velez, FMD Charles Young, FMD Alan Carpien, OGC John Rowland, OGC Charles Openchowski, OGC Bruce Gelber, DOJ Maureen Katz, DOJ Ken Long, DOJ John Smith, OERR OSRE Branch Chiefs RSD Liaisons 15

16 Pre-Settlement Phase Overview Proposed Settlement APPENDIX A Contact HQ Yes HQ Involvement Required? No Final Settlement Post-Settlement Phase Judicial or Admin. Settlement w/payment obligations Close/Update Account Yes Timely Payment Made? No EPA refers account to DOJ unless account is already at DOJ for tracking and enforcement Collection of Overdue Debt Compromise Overdue Debt

17 Post-Settlement Sum Certain/Date Certain Obligations Entered Settlement Agreement (establishes A/R) Failure to make Sum Certain/Date Certain Pymt. Obligations Arising from a judicial action Arising from an Admin. Action USAO s Financial Litigation Unit (FLU) (the FLU tracks the obligation and handles enforcement and collection) Is the amount owed >$1 million? Yes Prepare referral and send to ENRD for collection No EPA periodically checks w/flu on status of overdue payment Prepare Claims Collection Litigation Report (CCLR) Send to National Central Intake Facility (NCIF) which forwards the debt to the FLU for collection

18 Post-Settlement Future Response Cost Obligations Settlement Agreement Future response cost bill issued (establishes A/R) Bill paid on time? Yes Close out A/R No Begin assessing interest (if not paid within 30 days, then interest accures as of the date of the bill) Yes Dispute resolution invoked? No Send Notice of Non-payment letter w/amt. due + accrued interest Payment received? Yes No Has debtor set up escrow account? No Prepare referral and send to ENRD Yes Process Continued on Next Page

19 Informal/formal dispute resolution DOJ approval required for any compromise/write-off No Final Agency decision for payment in full? Yes Payment been made? Yes Close out A/R No Appealed to District Court? Yes No Prepare referral and send to ENRD Settlement outside of court? No Yes Close out account Final decision by court requiring payment? Yes No DOJ enforces judgment No Yes Payment made?

20 APPENDIX B CERCLA Collection Guidance - Quick Reference The guidance retains the basic referral and collections procedures from the interim guidance, and addresses additional areas, including: judgments, bankruptcies, interest, and stipulated penalties. Identify and Process Overdue Acconuts Receivable ( ARs ) Quickly DOJ automatically enforces sum-certain/date-certain obligations in judicial agreements or judgments. In most other cases, EPA issues a Non-Compliance letter within 15 days of identifying a delinquency and refers the claim to DOJ if not paid within 30 days from the date of the Non- Compliance letter. Conduct monthly monitoring of Superfund ARs. Sum Certain due on a Date Certain Delinquent ARs Payments Due under Judicial Agreements and Court Ordered Judgments The U.S. Attorney s Office monitors payment due dates and ensures that appropriate follow up action is taken to collect amounts due. A party has 60 days to appeal a judgment. When necessary, EPA should contact the pertinent Financial Litigation Unit to determine the status of DOJ enforcement actions. Payments Due from a party in Bankruptcy Proceedings Bankruptcy code automatic stay prohibits EPA debt collection activities. Unless EPA s claim is based on a pre-existing AR, record a memo entry in IFMS when EPA files its proof of claim. Once the court approves a final bankruptcy plan and EPA s claim is allowed, eliminate the memo entry and record an AR for the amount of the claim in IFMS. Contact DOJ for the status of a bankruptcy case, if needed. Past Cost Payments due under Section 122 Administrative Agreements Where the unpaid principal amount is equal to or less than $1 M (exclusive of interest, costs, or penalties), refer the debt to the National Central Intake Facility (NCIF). Where the unpaid principal amount is over $1 M, refer the debt to DOJ-ENRD. Future Response Cost Bill Delinquent ARs Delinquent future response cost bills are referred to DOJ-ENRD. A party typically has 30 days after receipt to pay the bill. When a party fails to pay a bill or to timely invoke dispute resolution (DR), EPA issues a Non- Compliance letter that gives the party 14 additional days to pay or to invoke DR. When a party invokes DR, ensure that all appropriate Regional offices are notified and the disputed amount is escrowed. EPA s goal is to complete disputes over costs within 90 days and refer the dispute to DOJ-ENRD within 30 days after the due date in EPA s final administrative decision.

21 Interest: Assessing and Collecting on Late Payments The settlement language determines when interest accrues on a late payment. Where a small balance remains because of a late payment, the Region should consider whether to immediately contact the party and request payment or write-off the remaining balance. Stipulated Penalties: Assessing and Collecting on Late Payments Depending on the settlement language, stipulated penalties may be triggered when the settling party fails to pay EPA s response costs. The stipulated penalty is referred to DOJ along with the delinquent AR arising from the nonpayment of the principal amount. Delinquent Accounts Receivable Arising under De Minimis Settlements Follow the same referral procedure for de minimis agreements that is followed for Section 122 sum-certain/date-certain administrative settlements. Consider a de minimis party s ability-to-pay and the enforcement value of the AR when deciding whether to refer the case for enforcement and collection.

22 APPENDIX C SAMPLE Memorandum of Understanding for handling Superfund Accounts Receivable Among the [Regional legal/enforcement, program/cost recovery and finance offices] Regions have flexibility and discretion in generating a Memorandum of Understanding (MOU) for handling Superfund accounts receivable. The following Sample MOU is only one example of how a Region might wish to facilitate coordination among different Regional offices. It is narrowly tailored. Regions should modify the MOU to fit the Regional organization and responsibilities of each Regional office. Because EPA Regions have different organizational structures, the sample language is left as generic as possible and is not meant to convey how a Region should handle its internal management. I. Introduction This Memorandum of Understanding (MOU) is designed to facilitate close and cooperative working relationships among the Regional Offices that handle Superfund accounts receivable. By clearly delineating the roles and responsibilities of the Regional Offices, the MOU should help avoid misunderstandings and allow for more efficient processing of current or delinquent accounts receivable. II. Purpose This MOU [and any attachments] provides the [legal, program, financial office (use Regional Office names as determined by Regional organization)] with operating procedures for establishing Superfund accounts receivable and for billing and collecting amounts due. III. Scope The MOU is intended to supplement Agency and Regional directives on the Superfund program and its cost recovery accounts receivable specifically. 1 This MOU documents the agreed upon procedures and interaction of the signatory Offices/Divisions. This MOU does not affect other relationships among the signatory [Offices/Divisions] as set forth in other Memoranda of Agreement and delegations governing other areas of responsibility, unless otherwise noted herein. [This MOU [amends] [replaces] the previous MOU dated ]. 1 The Region may wish to define the scope of its MOU more broadly, e.g., to include handling State Superfund Contracts, litigation referrals, and other related topics.

23 IV. The Types of Superfund Accounts receivable Addressed by this MOU [Cost Recovery] [One of the most important objectives of the Superfund Program is to recover the funds that EPA spends in cleaning up a Superfund site. Recovery may be accomplished either through negotiation with the potentially responsible parties (PRPs) associated with the site or as a result of a legal action against the PRPs. PRPs may be required to pay EPA all or only a portion of the costs that EPA incurred at a site. The amount and timing of payments due EPA may be found in documents such as consent decrees or administrative orders. The costs that EPA tries to recover may be past costs, future costs, premium payments (cashouts), oversight costs, or fines and penalties.] [Fines and Penalties] [The Superfund law gives EPA the authority to impose and collect fines and penalties from individuals or firms that violate the law or who do not comply with certain types of agreements or orders. EPA policy requires consent decrees to include a stipulated penalty provision in the decree. Administrative agreements and Administrative Orders on Consent (AOC) may also contain a stipulated penalty provision. Thus, depending on the language of the decree, AOC, or administrative agreement, stipulated penalties may be triggered when the settling party fails to comply with an obligation of a consent decree or administrative agreement, including the failure to pay EPA s response costs.] V. Managing Superfund Accounts receivable Roles and Responsibilities 2 [Regional program/cost recovery office] The [Regional program/cost recovery office] acts as the principal cost recovery process office, with responsibility for overall coordination of cost recovery activities. Remedial Project Managers (RPMs) and On-Scene Coordinators (OSCs) provide information and documentation of on-site activities for which cost recovery is sought. [The RPMs and OSCs also review bills and participate in case development.] Among the functions of the office are: [List functions of office] 2 The name and the specific roles and responsibilities of an individual office in the Regions vary. Regions should tailor this section to its own organizational structure and accounts receivable needs. 2

24 [Some examples include: 1) documenting work performed for the site; 2) keeping cost recovery targets on schedule; 3) preparing cost summary reports identifying the total oversight and/or past response costs, future or premium payments to be recovered for each site; 4) issuing demand letters and information requests; 5) assessing ability to pay claims; 6) tracking and reporting cost recovery related activities.] [Other duties might include preparing and forwarding: a cost summary report, a cover memo containing pertinent billing information, and a copy of the appropriate consent order or decree, to the [Regional financial office] for a bill to be prepared. The [Regional program/cost Recovery office] advises the [Regional financial office] of any changes in the amounts due or payment dates or any other information concerning the accounts receivable. Reviews and submits comments to the [Regional financial office] on the [weekly/bi-weekly/monthly] Superfund Accounts Receivable Report.] [Regional legal/enforcement office] The [Regional legal office] is the primary legal advisor for the cost recovery process in EPA Region. For legal actions creating Superfund debts, [the Regional legal office] will promptly transmit to the [Regional financial office] copies of all final settlement documents, consent decrees, administrative orders, or demand for stipulated penalty letters. The [Regional legal office] will advise the [Regional financial office] of any changes in the amounts due or the payment due dates which result from negotiations or meetings with potentially responsible parties [PRPs]. The [Regional legal office] will notify the [Regional finance and cost recovery/ program offices] when dispute resolution is invoked by [the settling party/respondents] as part of an agreement and which results in the delay of payment or penalty assessment. The [Regional legal office] represents EPA Region with respect to any stipulated penalty demands. A copy of EPA's Final Decision regarding an EPA demand for stipulated penalties will be forwarded to the [Regional financial office] to establish an accounts receivable. [Other duties of the [Regional legal office] might include: 1) reviewing and submitting comments to the [Regional financial office] on the [weekly/bi-weekly/monthly] Superfund Accounts Receivable Report; 2) tracking and reporting cost recovery related activities; 3) assisting with the collection process, including but not limited to reviewing Notice of Non- Compliance letters, preparing accounts receivable collection/enforcement referrals or write-off of accounts receivable requests; 4) reviewing oversight bills; and 5) providing notice of the resolution of bankruptcy claims and Court proceedings.] [Regional financial office] The [Regional financial office] is responsible for the administration and management of Superfund accounts receivable. The [Regional financial office] handles the following Superfund cost recovery activities: 1) verifies, records and tracks Superfund accounts receivable in the Integrated Financial Management System (IFMS) when notified of legal debts due the Agency; 3

25 2) bills and collects the amounts due; 3) records collections into IFMS and provides copies of collection information to the [Regional cost recovery/program and legal offices]; 4) notifies [Regional cost recovery/program and legal offices] when payments are not received by the due date; 5) calculates and assesses any interest on Superfund accounts receivable, as needed; and 6) prepares a [weekly/bi-weekly] Superfund Accounts Receivable Report. Upon receipt of a settlement document, the [Regional financial office] determines the appropriate Site Specific account number for the accounts receivable, assigns an accounts receivable log number to the document, records the accounts receivable into IFMS and creates a file containing the settlement document and any related correspondence. Upon receipt of a cost summary report for oversight charges and/or past response costs/future or premium payments at a site, the [Regional financial office] prepares a cover letter and invoice for the PRP containing the appropriate billing and remittance information. An account receivable log number will be assigned and the accounts receivable will be recorded in IFMS against the appropriate site specific account number. Copies of the letter and bill will be sent to [Regional cost recovery/program and legal offices]. When the collection is received, the funds are invested and the collection recorded in IFMS. VI. Bi-weekly/Monthly Meetings 3 The undersigned [Regional cost recovery/program, legal and financial offices] agree that designated staff from the undersigned offices will meet bimonthly (or monthly) to review the Regional Superfund accounts receivable. The purpose of the meetings is to evaluate the ongoing Superfund accounts receivable process, prioritize the enforcement and collection of overdue accounts receivable and ensure coordination of the Regional activities. VII. Modification/Amendments [This MOU can be modified/amended with the written concurrence of the undersigned offices.] 3 The Region may want to designate certain staff members to form an accounts receivable workgroup/team whose job is to keep management apprised of current issues arising in the Region s accounts receivable process. For example, the workgroup/team functions could be integrated into the MOU. The workgroup/team could provide feedback and suggestions for improvement, identify critical process points and areas for follow-up activity, and suggest modifications to the MOU and the Regional cost recovery procedures. 4

26 VIII. Approval/Concurrence We, the undersigned, agree with the purpose and procedures set forth in this Memorandum of Understanding and will ensure that these efforts will be fully supported by our staffs. [Regional program/cost recovery office] I concur in the above Memorandum of Understanding for handling Superfund Accounts Receivable. Date [Title] [Regional legal/enforcement office] I concur in the above Memorandum of Understanding for handling Superfund Accounts Receivable. Date [Title] [Regional financial office] I concur in the above Memorandum of Understanding for handling Superfund Accounts Receivable. Date [Title] [4. Regional Administrator Concurrence] 4 4 The Region may wish to include the RA s signature. 5

27 1 APPENDIX D Revised MODEL LETTER NOTICE OF NON-COMPLIANCE WITH PAYMENT PROVISION OF [CONSENT DECREE/SETTLEMENT/AGREEMENT] Certified Mail - Return Receipt Requested [Date] [Name], [Title] [Address] RE: [ Site ("Site")], [Location]: [Administrative Order/Consent Decree/122(h) Agreement, EPA Docket No. ] Dear [ ]: [I. For failure to pay a sum certain due on a date certain e.g., past cost payment:] A. Failure to Make Required Payment With this letter, EPA is notifying you of [Respondent(s)/Settling Defendant(s)] [insert name(s )] noncompliance with the above-referenced [Administrative Order/Consent Decree/Agreement] for failure to pay [insert dollar amount of overdue payment, e.g., $100,000 ] by the due date of [date] as required by Section, Paragraph of the [Administrative Order/Consent Decree/Agreement]. [Paragraph states: If appropriate, quote payment language of [Administrative Order/Consent Decree/Agreement]] [If appropriate, include discussion of why payment is now overdue based on the above language.] B. Interest is Accruing on the Unpaid Amount Interest is accruing on the unpaid amount in accordance with Section, Paragraph of the [Administrative Order/Consent Decree/Agreement], from [date] at [insert applicable interest rate]. As of the date of this letter, interest has accrued in the amount of $. [Paragraph states: 1 The Region should tailor this model to the specific circumstances of the case. 1

28 If appropriate, quote interest language of [Administrative Order/Consent Decree/Agreement], including obligation to pay, interest rate and definition, if any.] C. Stipulated Penalties 2 In accordance with Section, Paragraph of the [Administrative Order/Consent Decree/Agreement], you may be subject to stipulated penalties which are accruing in the amount of $ per day from the day after the payment was due through the date full payment is made. [Paragraph states: If appropriate, quote applicable stipulated penalty language of the [Administrative Order/Consent Decree/ Agreement] [II. For failure to pay a future response cost bill and properly invoke dispute resolution:] A. Failure to Pay Future Response Costs 3 or Properly Invoke Dispute Resolution With this letter, EPA is notifying you of [Respondent(s)/Settling Defendant(s)][insert name(s)] noncompliance with the above-referenced [Administrative Order/Consent Decree/Agreement] for failure to: (1) pay EPA's Future Response Costs demanded by EPA s bill dated, or (2) properly invoke dispute resolution for some or all of the Future Response Costs demanded, within [insert number] days of [the date of the demand/the date of receipt of the demand], as provided by Section, Paragraph of the [Administrative Order/Consent Decree/Settlement. [As to Future response Costs, paragraph states: If appropriate, quote future response cost payment language (include any relevant dispute resolution language and, if applicable, note escrow requirement) of [Administrative Order/Consent Decree/Agreement]] Specifically, the [Respondent(s)/Settling Defendant(s)] has/have not paid $, nor has/have it/they notified EPA that any disputed amounts have been deposited into an interest-bearing escrow account as required by Paragraph. You have fourteen (14) days from the date of this Notice to pay the amount due or to properly invoke the dispute resolution provision as required by the [Administrative Order/Consent Decree/Agreement]. 2 [If the document has no applicable stipulated penalty provision, substitute, In addition, the [Respondent(s)/Settling Defendant(s)] may be subject to civil penalties from the day after the payment was due through the date that payment is made as a result of their noncompliance. ] 3 To ensure that some costs are not inadvertently excluded, use the specific term in the [Administrative Order/Consent Decree/Agreement]. For example, if future response costs is what the settling party agreed to pay, then use that term when referring to the payment and not the term oversight costs. 2

29 B. Interest is Accruing on the Unpaid Amount Interest is accruing on the unpaid amount in accordance with Section, Paragraph of the [Administrative Order/Consent Decree/Agreement], from [date] at [insert applicable interest rate]. As of the date of this letter, interest has accrued in the amount of $. [Paragraph states: If appropriate, quote interest language of [Administrative Order/Consent Decree/Agreement], including obligation to pay, interest rate and definition, if any.] C. Stipulated Penalties 4 In accordance with Section, Paragraph of the [Administrative Order/Consent Decree/ Agreement], you are subject to stipulated penalties which are accruing in the amount of $ per day from the day after the payment was due [or required to deposited into an escrow account] through the date full payment is made [or deposited into an escrow account]. [Paragraph states: If appropriate, quote applicable stipulated penalty language of the [Administrative Order/Consent Decree/ Agreement]] [For all cases of failure to pay:] D. Failure to Pay May Result in this Claim Being Referred to the United States Department of Justice for Collection Payment is due immediately. If payment is not made within fourteen (14) days after the date of this Notice, the payment amount, plus any accrued interest, and penalties, may be referred to the Department of Justice for enforcement and collection. No additional EPA notice will be sent. The referral will also include enforcement costs, including attorneys fees, as appropriate. The manner and method of payment is set forth in paragraph of the [Administrative Order/Consent Decree/ Agreement]. [Quote applicable language from the [Administrative Order/Consent Decree/ Agreement] 4 [If the document has no applicable stipulated penalty provision, substitute, In addition, the [Respondent(s)/Settling Defendant(s)] may be subject to civil penalties from the day after the payment was due through the date that payment is made as a result of their noncompliance. ] 3

30 If you have any questions or wish to discuss this matter, or need to make further arrangements, please contact [name] [ telephone number]. Please note, unless otherwise advised in writing by EPA, any communications with EPA will not relieve you of your obligation to make the required timely payment as provided in this letter. Sincerely, [Name] [Title] [Office] cc: [Financial Management Officer, U.S. EPA, Region ] [Assistant ORC/Legal Enforcement Staff] [DOJ Assistant Section Chief] [Cost recovery/superfund program staff] 4

31 1 (De Minimis version) APPENDIX D NOTICE OF NON-COMPLIANCE WITH PAYMENT PROVISION OF DE MINIMIS ADMINISTRATIVE AGREEMENT Certified Mail - Return Receipt Requested [Date] [Name], [Title] [Address] RE: [ Site ("Site")], [Location]: [CERCLA Section 122(g) De minimis Administrative Agreement, EPA Docket No. ] Dear [ ]: A. Failure to Make Required Payment With this letter, the U.S. Environmental Protection Agency (EPA) is notifying you that it has not received the payment required by the above-referenced De minimis Administrative Agreement. Respondent(s) [insert name(s )] failure to pay [insert dollar amount of overdue payment, e.g., $10,000 ] by the due date of [insert date] as required in Section, Paragraph is a violation of the De minimis Administrative Agreement. [Paragraph states: If appropriate, quote payment language of De minimis Administrative Agreement.] [If appropriate, include discussion of why payment is now overdue based on the above language.] B. Interest is Accruing on the Unpaid Amount Interest is accruing on the unpaid amount in accordance with Section, Paragraph of the De minimis Administrative Agreement, from [date] at [insert applicable interest rate]. As of the date of this letter, interest has accrued in the amount of $. [Paragraph states: If appropriate, quote interest language of De minimis Administrative Agreement, including obligation to pay interest based on late payment, interest rate and definition, if any.] 1 The Region should tailor this model to the specific circumstances of the case. 5

32 [C. 2 Failure to Pay May Result in this Claim Being Referred to the United States Department of Justice for Collection Payment is due immediately. If payment is not made within thirty (30) days after the date of this Notice, the payment amount, plus any accrued interest, may be referred to the Department of Justice for enforcement and collection. No additional EPA notice will be sent. The litigation referral would also include enforcement costs, including attorneys fees, as appropriate. The manner and method of payment is set forth in paragraph of the De minimis Administrative Agreement. Quote applicable language from the De minimis Administrative Agreement.] [C. Failure to Pay Will Render the De Minimis Administrative Agreement Null and Void Payment is due immediately. If payment is not made within thirty (30) days after the date of this Notice, the De minimis Administrative Agreement will become null and void based on your noncompliance with the terms of the agreement. Failure to resolve your liability by satisfying the payment obligations and complying with the agreement will preclude contribution protection under CERCLA Section 113(f)(2) and as set forth in paragraph of the De minimis Administrative Agreement and will prevent EPA s covenant not to sue from taking effect as set forth in paragraph of the De minimis Administrative Agreement. [where applicable, you may wish to add and may subject you to a private contribution lawsuit in this paragraph as well] Quote applicable language from the Administrative Agreement.] D. Further Arrangements If you have any questions or wish to discuss this matter, or need to make further payment arrangements due to financial difficulties or other reasons, please contact [name] [address] and [telephone number]. Please note, unless otherwise advised in writing by EPA, any communications with EPA will not relieve you of your obligation to make the required timely payment as provided in this letter. 2 Regions should refer delinquent accounts receivable arising under Section 122(g) administrative de minimis agreements for collection. In limited cases, it may be appropriate to either compromise a promised payment or to write-off the account receivable because of changed financial circumstances of the de minimis party or the limited enforcement value in pursuing the claim. 6

33 Sincerely, [Name] [Title] [Office] cc: [Financial Management Officer, U.S. EPA, Region ] [Assistant ORC/Legal Enforcement Staff] [DOJ Assistant Section Chief] [Cost recovery/superfund program staff] 7

34 ATTACHMENT E Financial Litigation Unit ( FLU ) Directory of the U.S. Department of Justice Referrals to the FLUs As a reminder, where the total principal amount of the claim is $1,000,000 or less (exclusive of interest, costs, or penalties), the claim should be referred to the appropriate United State Attorney s Office (generally, this will be the Office for the district where the debtor or debtor s property is located). Referrals should not be made, however, directly to the U.S. Attorney s Office. A referral should be sent to the National Central Intake Facility (NCIF) at the below address: U.S. Department of Justice National Central Intake Facility 1110 Bonifant Street, Suite 220 Silver Spring, MD NCIF will process the referral and forward it on to the appropriate U.S. Attorney s Office (in some cases it may go to a private attorney retained by the Office) to undertake collection efforts. The NCIF will notify EPA as to where the claim has been referred. For Claims where the principal amount due is over $1,000,000, EPA should refer the claim to the Environmental and Natural Resources Division of the Department of Justice.

35 U.S. Department of Justice Executive Office for U.S. Attorneys FINANCIAL LITIGATION DIRECTORY UNITED STATES DEPARTMENT OF JUSTICE EXECUTIVE OFFICE FOR UNITED STATES ATTORNEYS FINANCIAL LITIGATION STAFF WASHINGTON, DC May 24, 2002 ** PRESIDENTIALLY APPOINTED

36 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) AL/MD 02 Condon AL/ND 01 Koga AL/SD 03 Gardner AK 06 Gardner Leura Garrett Canary COM: 334/ FAX: 334/ One Court Square, Suite 201 Montgomery, AL COM: 334/ FAX: 334/ s Patricia Conover Ralph Hickey 334/ Antrena B. Gardner Financial Litigation Agent Marsha A. Tunnell Nancy Baker See FLU's address USAALM TALON Alice H. Martin COM: 205/ FAX: 205/ Robert S. Vance Building th Ave. N. Birmingham, AL COM: 205/ FAX: 205/ s Cindy D. Simmons Donna Brown Carol L. Alston Financial Litigation Agents Kathy Cade Glenda Roberts See FLU's Address Williford USAALN TALON 205/ David P. York COM: 251/ FAX: 251/ Riverview Plaza 63 S. Royal Street, Suite 600 Mobile, AL s Eugene A. Seidel Lisa A. Keith Financial Litigation Agents Carolyn Kennedy Leigh Gwin COM: 251/ FAX: 251/ Joshua Smith See FLU's Address 251/ USAALS TALON Timothy M. Burgess COM: 907/ FAX: 907/ W. 7th Ave. #9 Rm 253 Anchorage, AK COM: 907/ FAX: 907/ Richard L. Pomeroy Renee Robinson 907/ s Brenda Birmingham Sean Robinson Financial Litigation Agent Scarlet Smith See FLU's Address USAAK TALON AZ 08 Koga Paul Charlton COM: 602/ FAX: 602/ AAZ01 Two Renaissance Square 40 N. Central Ave Phoenix, AZ w. Congress, Suite 4900 Tucson, AZ COM: 520/ FAX: 520/ s Gerald S. Frank James E. Mueller Sup. Debt Collection Agent Genie Miskell Financial Litigation Agents Gloria Linsenbach Vicki Potter (DynCorp) Jacque Slade Phuong Bui 602/ USAAZ TALON AR/ED 09 H.E. (Bud) Cumins, III COM: 501/ FAX: 501/ See FLU's Address 425 W. Capital, Suite 500 Little Rock, AR P.O. Box 1229 Little Rock, AR Stacey E. McCord Elaine Dawson 501/ Financial Litigation Agent Linda Binz Karen Morgan COM: 501/ FAX: 501/ USAARE TALON

37 4 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) AR/WD 10 Gardner Thomas C. Gean COM: 479/ FAX: 479/ See FLU's Address 6th & Rogers, Room 216 U.S. Post Office & Courthouse Building Ft. Smith, AR P.O. Box 1524 Ft. Smith, AR David Ferguson John Debes 479/ Linda Miller FLU Back-up Cindy McKinney COM: 479/ FAX: 479/ USAARW TALON CA/CD 12 Ross CA/ED 97 Koga Debra W. Yang COM: 213/ FAX: 213/ U.S. Courthouse 312 N. Spring St. Los Angeles, CA N. Los Angeles St. Room Number 7516AA Los Angeles, CA COM: 213/ FAX: 213/ Zoran J. Segina Richard Bernales 213/ Pat Burton Financial Litigation Agents Lillian Aranda Wanda Belvin Armida Castaneda Mary Edmond Marilen Iliscupides Lisa Lozano Yvette Quirol Santiago Maninang Leticia Medina FLU Investigator Robert Grossman Fran Traylor See FLU's Address USACAC TALON/CLASS John K. Vincent U.S. Attorney COM: 916/ FAX: 916/ I Street, Suite Sacramento, CA COM: 916/ FAX: 916/ Ana Maria Martel Roland Aganon Tina Baca Financial Litigation Agents Vangie Dizon Nancy Parr Tracy Remitz See FLU's Address 916/ USACAE TALON CA/ND 11 David W. Shapiro U.S. Attorney 450 Golden Gate Ave. 10th Fl. San Francisco, CA Douglas K. Chang s Deneen Moises (Supervisor) Gwen Roberts Ybarra COM: 415/ FAX: 415/ See FLU's Address 450 Golden Gate Ave. Box San Francisco, CA COM: 415/ FAX: 415/ Crystal Ruffin 415/ Financial Litigation Agents Marilyn M. Campbell Nancy Chew Lori Hawkingberry Joycelyn Tatum Yvonne Wong USACAN TALON/CLASS

38 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) CA/SD 98 CO 13 Koga CT 14 Patrick K. O Toole U.S. Attorney COM: 619/ FAX: 619/ Front Street Rm Fed. Office Building San Diego, CA Robert H. Plaxico Mary C. Lundberg Donald D. Clausen Leah Bussell Gricelda Covington Financial Litigation Invest. Sonia Herrera Carolee Kness Laura Potts Jantine Stoops COM: 619/ FAX: 619/ Kim Phan 619/ See FLU's Address USACAS TALON John W. Suthers COM: 303/ FAX: 303/ Seventeenth Street Plaza 1225 Seventeenth St., Suite 700 Denver, CO COM: 303/ FAX: 303/ Lisa Christian Tom Zinser 303/ Paralegal Supervisor Bob Combs Pat McGee-Wake Financial Litigation Agents Vincent Crespin Carolyn Dean See FLU s Address USACO TALON John A. Danaher III U.S. Attorney COM: 203/ FAX: 203/ Connecticut Financial Center 157 Church Street, 23 rd Floor New Haven, CT Christine Sciarrino E. Joyce Seraphin Financial Litigation Agent Rosemary Oren Andrea J. Palmucci COM: 203/ FAX: 203/ Barbara Bizor See FLU's Address 203/ USACT TALON DE 15 Ramsey Colm F. Connolly COM: 302/ FAX: 302/ See FLU's Address P.O. Box 2046 Wilmington, DE Chase Manhattan Center 1201 Market St. Suite 1100 Wilmington, DE Paulette Nash Tony Anguti 302/ Margie Truman COM: 302/ FAX: 302/ USADE TALON DC 16 Gardner Roscoe C. Howard, Jr. COM: 202/ FAX: 202/ Judiciary Center Bldg th St. N.W., Rm Washington, D.C COM: 202/ FAX: 202/ Fred Haynes Nancy Gonzalez 202/ Patricia Gilbert Financial Litigation Agents Zena Cuttino Lavenia L. Greene Carolyn Poston See FLU's Address USADC TALON/CLASS

39 6 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) FL/MD 18 FL/ND 17 Clark FL/SD 04 Ramsey GA/MD 20 Paul Ignatius Perez COM: 813/ FAX: 813/ Park Tower Building, 400 North Tampa St., Rm 3200 Tampa, FL COM: 813/ FAX: 813/ John Moran 813/ Anne Fishkin 813/ Janice Ramsey Sup. Debt Collection Agent Cassandra Mitchell Financial Litigation Agents Linda Bealts Paulette Belcher (DynCorp) Linda Best Beverly Hill Traci Lenz Regina J. Polite Virginia Stanton Amberedus Watson DynCorp See FLU's Address USAFLM TALON Thomas F. Kirwin U.S. Attorney COM: 850/ FAX: 850/ North Adams Street, 4 th Fl Tallahassee, FL COM: 850/ FAX: 850/ Pamela A. Moine Robert D. Stinson Beth McCann 850/ Dorothy Yeager Financial Litigation Agents Ivey Sewell Ann Head-Ortega See FLU s Address USAFLN TALON Guy A. Lewis U.S. Attorney COM: 305/ FAX: 305/ N.E. 4th St., Suite 300 Miami, FL COM: 305/ FAX: 305/ Grisel Alonso Mary Dooley Elizabeth Stein Karin Wherry Bob Feinberg 305/ Supervisory Legal Tech Ann Woodruff (9318) Karen Thompson (9312) Financial Litigation Agent Catrina Bryant Cathy Joseph Magda Del Valle (DynCorp) Brenda Glasford (DynCorp) Carrie Greenia (DynCorp) Rolando Leon Grace Lubin Maryet Moxie-Stinson Colleen Perez Gerald Thompson Sandra Williams See FLU's Address USAFLS TALON/CLASS Frank Maxwell Wood COM: 478/ FAX: 478/ P.O. Box 1702 Macon, GA Cherry St. 4th Floor Macon, GA Bernard Snell Becky Sanders Financial Litigation Agent Beverly Farley COM: 478/ FAX: 478/ Debra J. Lane See FLU's Address 478/ USAGAM TALON

40 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) GA/ND 19 Ross GA/SD 21 GU 93 Ybarra HI 22 Ybarra William S. Duffey, Jr. COM: 404/ FAX: 404/ Richard Russell Bldg 75 Spring St., S.W. Rm 1800 Atlanta, GA COM: 404/ FAX: 404/ Kristin I. Tolvstad 404/ Claud M. Thompson 404/ Joyce Schnurr Financial Litigation Agents Nancy Hein Ginger Jackson Twila Little Del Rease Smith Vanessa Stembridge Pat Wells Diane Williams Gayle J. Wilson See FLU's Address USAGAN TALON Richard S. Thompson COM: 912/ FAX: 912/ P.O. Box 8970 Savannah, GA Bull St. Savannah, GA James L. Coursey, Jr. Ruth H. Young s Diane Tremble Maurene Tapley COM: 912/ FAX: 912/ Sherrie Page See FLU's Address 912/ USAGAS TALON Frederick A. Black U.S. Attorney COM: 671/ FAX: 671/ Sirena Plaza 18 Hernan Cortez, Suite 500 Hagatna, GU COM: 671/ Ext. 124 FAX: 671/ Marivic P. David Patrick O'Keefe 671/ ext. 113 Marie Chenery Financial Litigation Agent Michelle Perez Answering Machine See FLU's Address 671/ USAGU TALON Eward H. Kubo, Jr. COM: 808/ FAX: 808/ PJKK Fed. Bldg Room 6100 Box Ala Moana Blvd. Honolulu, HI Michael Chun Mark Recktenwald Lisa S. Yoshimura Financial Litigation Agents Erlinda Lowry Barbara Pierce COM: 808/ FAX: 808/ Randal Wong See FLU's Address 808/ USAHI TALON ID 23 Thomas E.Moss P.O. Box 32 Boise, ID Amy S. Howe Rosemary S. Zimbelman COM: 208/ FAX: 208/ See FLU's Address First Interstate Center 877 W. Main, Suite 201 Boise, ID COM: 208/ FAX: 208/ Laurie Porter 208/ Financial Litigation Agent LaRae Cruser USAID TALON

41 8 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) IL/CD 26 IL/ND 24 Ybarra IL/SD 25 Jan Paul Miller COM: 217/ FAX: 217/ Paul Findley Fed. Bldg. 600 E. Monroe St., Rm 312 Springfield, IL Beth Collins James A. Lewis Mary Ann Blair Financial Litigation Agent Ann O. Johnson COM: 217/ FAX: 217/ Ed Leonard See FLU's Address 217/ USAILC TALON Patrick J.Fitzgerald COM: 312/ FAX: 312/ Everett McKinley Dirksen Bldg, Room 500 S 219 S. Dearborn St. Chicago, IL COM: 312/ FAX: 312/ Michele Schroeder Ray Dertz 312/ Felice Shinneman Lead Fin. Lit Agent Grace Wingfield Financial Litigation Agents Linda Allen Aurea Adriano Ken Giles Clay Gogins Desiree Mitchell Maxine Washington See FLU's Address USAILN TALON/CLASS Robert J. Cleary U.S. Attorney COM: 618/ FAX: 618/ Executive Drive, Suite 300 Fairview Heights, IL COM: 618/ FAX: 618/ Gerald M. Burke Jim Agnes 618/ Velva I. Stewart Financial Litigation Agent Tammy McMannis Mary Weber See FLU's Address USAILS TALON IN/ND 27 Ross Joseph S. Van Bokkelen COM: 219/ FAX: 219/ See FLU's Address 5400 Federal Plaza, Suite 1500 Hammond, IN Carol A. Davilo Cynthia A. Gant 219/ s Peggy Palmer Financial Litigation Agent Doris Conway Anita Hoover COM: 219/ FAX: 219/ USAINN TALON IN/SD 28 Gardner Susan W. Brooks COM: 317/ FAX: 317/ W. Market St., Suite 2100 Indianapolis, IN COM: 317/ FAX: 317/ Jill E. Zengler Sue Ross Linda VanHorn Financial Litigation Agent Tracy Jones Michelle Frydell Robert Masoni See FLU's Address 317/ USAINS TALON

42 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) IA/ND 29 Koga IA/SD 30 Koga Charles W. Larson, Sr. COM: 319/ FAX: 319/ P.O. Box Cedar Rapids, IA Hach Building, Suite First Street, SE Cedar Rapids, IA Kandice Wilcox Sharon Reid 319/ Debra Clark Financial Litigation Agent Jean Gregory See FLU's Address COM: 319/ FAX: 319/ USAIAN TALON Steven M. Colloton COM: 515/ FAX: 515/ U.S. Courthouse Annex,2nd Fl. 110 E. Court Avenue Des Moines, IA Gary L. Hayward Financial Litigation Agents Rose Ostrand COM: 515/ FAX: 515/ Fred Hanna See FLU's Address 515/ USAIAS TALON KS 31 Eric F. Melgren COM: 316/ FAX: 316/ Epic Center 301 N. Main Wichita, KS Quincy St., Room 290 Topeka, KS COM: 785/ FAX: 785/ Tanya Sue Wilson Mary Woo 316/ Financial Litigation Agents Carol Campbell Ellen Clark Cathy Jepson Karen Stevens USAKS TALON KY/ED 32 Ramsey KY/WD 33 Ramsey LA/ED 34 Clark Gregory F. Van Tatenhove COM: 859/ FAX: 859/ West Vine St., Suite 400 Lexington, KY COM: 859/ FAX: 859/ H. Davis Sledd Lynne Woodrum Financial Litigation Agent P.J. Guthrie Robin Gosper See FLU's Address 859/ USAKYE TALON Stephen B. Pence COM: 502/ FAX: 502/ Bank of Louisville Bldg. 510 W. Broadway 10th Fl. Louisville, KY s Candace Hill Andrea Fried Neichter Financial Litigation Agents Debbie Beld Kim Breit Wendy Parel COM: 502/ FAX: 502/ Carol Uebelhoer See FLU's Address 502/ USAKYW TALON James Letten U.S. Attorney COM: 504/ FAX: 504/ Hale Boggs Federal Building 501 Magazine St. Room 210 New Orleans, LA COM: 504/ FAX: 504/ Eneid A. Francis Civil Chief Peter Bayer Joan Holub Financial Litigation Agent Rosanne Alford Annelisa Jackson Alice Jefferson See FLU's Address USALAE TALON

43 10 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) LA/MD 95 David R. Dugas COM: 225/ FAX: 225/ Russell B. Long Federal Bldg. 777 Florida St., Suite 208 Baton Rouge, LA James L. Nelson Darryl Blink 225/ Nancy Bergeron Financial Litigation Agent Rosalie Insprucker COM: 225/ Gardner See FLU's Address FAX: 225/ USALAM TALON LA/WD 35 Donald W. Washington COM: 318/ FAX: 318/ Fannin Street, Suite 3201 Shreveport, LA COM: 318/ FAX: 318/ John A. Broadwell Karen B. Levo 318/ Vickie Eaves Financial Litigation Agents Colleen Gilliam Sheila Still Ramsey See FLU's Address USALAW TALON ME 36 Paula Silsby U.S. Attorney COM: 207/ FAX: 207/ East Tower, 6th Floor 100 Middle Street Plaza Portland, ME Frederick C. Emery Tony McGarrell 207/ Lucy Howland COM: 207/ Ext Ross See FLU's Address FAX: 207/ USAME TALON MD 37 Thomas M. Dibiagio COM: 410/ FAX: 410/ U.S. Courthouse 101 W. Lombard St. Suite 6625 Baltimore, MD COM: FAX: Tamera L Fine Doug Lohr 410/ /4800 Patricia Smith 410/ /4800 Sup. Angela K. Meadows Financial Litigation Agents Clarice George Caroline Guth Carmelita Henson Wanda Shimer Connors See FLU's Address USAMD TALON MA 38 Michael J. Sullivan COM: 617/ FAX: 617/ One Courthouse Way U.S. Courthouse, Suite 9200 Boston, MA Christopher Alberto Financial Litigation Agents Joanne Albano Anita Kiley Lori Ward COM: 617/ FAX: 617/ Beth Miltner Connors See FLU's Address 617/ USAMA TALON MI/ED 39 Jeffery G. Collins COM: 313/ FAX: 313/ / / W. Fort Street, Suite 2001 Detroit, MI COM: 313/ FAX: 313/ Ellen Christensen Jacqueline M. Hotz Judith Cieslak Patricia Barnard Financial Litigation Agents Elizabeth Becker Cynthia Lehnis Karen Stachow Danette Scagnetti Ross See FLU's Address 313/ USAMIE TALON/CLASS MI/WD 40 Margaret M. Chiara P.O. Box 208 Grand Rapids, MI W. Francesca Ferguson Michael L. Shiparski Financial Litigation Agents Maya Blade Lois Hecker Cheryl Stoll

44 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM MN 41 Clark MS/ND 42 Gardner MS/SD 43 Gardner MO/ED 44 UNITED STATES ATTORNEY Address & Telephone COM: 616/ FAX: 616/ FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX The Law Building 330 Ionia Ave., N.W., St. 501 Grand Rapids, MI AUSA FLU & SYSTEM CONTACTS Roger Hensley 616/ FINANCIAL LITIGATION AGENTS ( - SYSTEM) COM: 616/ See FLU's Address FAX: 616/ USAMIW TALON Thomas B. Heffelfinger COM: 612/ FAX: 612/ U.S. Courthouse 300 South Fourth Street Minneapolis, MN Mary Trippler 612/ Cindy Loken Financial Litigation Agents Nancy Nordeen Linda Mike Patti Perpich Anita Uteg COM: 612/ FAX: 612/ Dan McConville 612/ See FLU 's Address USAMN TALON Jim M. Greenlee COM: 662/ FAX: 662/ Jefferson Avenue Oxford, MS COM: 662/ FAX: 662/ Ralph M. Dean Faye Self 662/ Karen B. Tidwell Financial Litigation Agent Donna P. Bynum See FLU's Address USAMSN TALON Dunn O. Lampton COM: 601/ FAX: 601/ One Jackson Place 188 E. Capitol St., Rm 500 Jackson, MS Pshon Barrett Johnnie Thornton 601/ Lisa Bullock Financial Litigation Agent Linda Bishop Gwendolyn McGee COM: 601/ FAX: 601/ See FLU's Address USAMSS TALON Raymond W. Gruender COM: 314/ FAX: 314/ Thomas F. Eaglet on U.S. Courthouse 111 S. 10 th Street, Rm St. Louis, MO s Deborah L. Golemon Lynne Duren Financial Litigation Agents Cheryl Bach Mary Feltmann Karen Wilke COM: 314/ FAX: 314/ Mark C. Corkery See FLU's Address 314/ USAMOE TALON

45 12 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) MO/WD 45 MT 46 NE 47 Koga NV 48 Ross NH 49 Ross NJ 50 Ybarra Todd P. Graves COM: 816/ FAX: 816/ Charles Evans Whittaker Courthouse 400 E. 9 th Street, 5 th Floor Kansas City, MO David DeTar Newbert Sup. Mary Covington s Valerie Abernathy Colleen Cook Debra Paschal COM: 816/ FAX: 816/ William Waldram See FLU's Address 816/ USAMOW TALON William W. Mercer COM: 406/ FAX: 406/ P.O. Box 1478 Billings, MT Western Federal Savings and Loan Bldg., Suite rd Ave., North Billings, MT Victoria L. Francis s Lisa Gustin Ann Tyler COM: 406/ FAX: 406/ Jason Ferree See FLU's Address 406/ USAMT TALON Michael G. Heavican COM: 402/ FAX: 402/ Dodge Street, Suite 1400 Omaha, NE COM: 402/ FAX: 402/ Laurie Barrett s Judy Kinney Karla Moraine Jason Bray See FLU's Address 402/ USANE TALON Daniel G. Bogden COM: 702/ FAX: 702/ Las Vegas Blvd S, Su 5000 Las Vegas, NV COM: 702/ FAX: 702/ Carlos A. Gonzalez Robin Cornwell Financial Litigation Agents Kim Bush Darlene Ruckard Bert Labrador See FLU's Address 702/ USANV TALON Thomas P. Colantuono COM: 603/ FAX: 603/ Pleasant St., Rm 352 Concord, NH COM: 603/ FAX: 603/ David L. Broderick Paralegal Joan Hederman Edward Carey See FLU's Address 603/ USANH TALON Christopher J. Christie COM: 973/ FAX: 973/ Federal Building, Rm Broad St. Newark, NJ COM: 973/ FAX: 973/ Susan J. Steele Heather Lewis 973/ s Kathy Connors Dianne Cohen Financial Litigation Agents Theresa Beasley Robin Brown Cassandra Covin Jeannine Keenan Devetha McDougall Patricia McFarland See FLU's Address USANJ TALON

46 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) NM 51 Koga NY/ED 53 Condon NY/ND 52 Ross NY/SD 54 Condon David C. Iglesias COM: 505/ FAX: 505/ P.O. Box 607 Albuquerque, NM rd St., N.W. Suite 900 Albuquerque, NM Manuel Lucero 505/ Lois Agnes COM: 505/ /1457 FAX: 505/ Theresa Moore See FLU's Address 505/ USANM TALON Alan Vinegrad U.S. Attorney COM: 718/ FAX: 718/ Pierrepont Plaza 16th Floor Brooklyn, NY Thomas A. McFarland 718/ Beth Schwartz 718/ James Knapp 718/ Mary Dickman 718/ Paralegal Supervisor Brenda Hinkson Financial Litigation Agents Cheryl Baxter Celenia Escalante Donna M. Lynch Ray F. Paz Daisy Roman Rosalyn Smith Shauna Sawyer COM: 718/ FAX: 718/ Anthony M. DiSanto 718/ See FLU's Address USANYE TALON/CLASS Joseph A. Pavone U.S. Attorney COM: 315/ FAX: 315/ P.O. Box South Clinton St. Syracuse, NY COM: 315/ FAX: 315/ William H. Pease William Eckert 315/ Sup. Beverly Parody s Helen Atkinson Paul Condon Jane Sylvester Financial Litigation Agent Cheryl Jachym See FLU's Address USANYN TALON/CLASS James B. Comey COM: 212/ FAX: 212/ One St. Andrews Plaza New York, NY St. Andrews Plaza, 2 nd Floor New York, NY COM: 718/ FAX: 718/ s Kathleen Zebrowski Peter Pascarelli 212/ Louis W. Jankowski s Mary Johnson-Mickel (Sup) Madelaine B. Coleman-Nagle Gina March-Hudson Financial Litigation Agents Herman Amos, Jr. Audley E. Baptiste Janis Daley Connie Jones Marsha Fils-Aime Carlos E. Ortiz Kathy Taylor See FLU's Address USANYS TALON

47 14 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) NY/WD 55 Condon NC/ED 56 Connors NC/MD 57 NC/WD 58 ND 59 Koga NMI 05 OH/ND 60 Gardner Michael A. Battle COM: 716/ FAX: 716/ Federal Center 138 Delaware Ave. Buffalo, NY Gail Y. Mitchell 716/ Ext. 833 s Peter R. Galenda Alberta Greco Denise J. Wray COM: 716/ FAX: 716/ Gail E. Barry See FLU's Address 716/ Ext 815 USANYW TALON Frank D. Whitney COM: 919/ FAX: 919/ Federal Building, Suite New Bern Avenue Raleigh, NC Barbara D. Kocher Sarah Aman Financial Litigation Agents Claire Farland Charlene Harris Catherine Holmes Jeremy Morgan COM: 919/ FAX: 919/ Joe Stutler 919/ See FLU's Address USANCE TALON Anna Mills S. Wagoner COM: 336/ FAX: 336/ P.O. Box 1858 Greensboro, NC S. Edgeworth St., 4th Fl Greensboro, NC John W. Stone, Jr. Gill P. Beck Joan Binkley Financial Litigation Agents Jan R. Collins Monica Jones Carole Smith COM: 336/ FAX: 336/ Cindy Brooks See FLU's Address 336/ USANCM TALON Robert J. Conrad Jr. COM: 704/ FAX: 704/ Suite 1700 Carillon Building 227 West Trade Street Charlotte, NC Karen E. Eady Financial Litigation Agents Patti Gard Ashley Dressler Lorin McAllister (DynCorp) COM: 704/ See FLU's Address FAX: 704/ Rick W. Sumrall USANCW TALON Drew H. Wrigley COM: 701/ FAX: 701/ Quentin N. Burdick 655 First Ave., N., Suite 250 Fargo, ND Shon Hastings Kim Kuehl 701/ Linda Webb Financial Litigation Agent Sandra Woodward COM: 701/ See FLU's Address FAX: 701/ USAND TALON SEE GUAM Emily M. Sweeney COM: 216/ FAX: 216/ Bank One Center 600 Superior Avenue, East Cleveland, OH Richard French Patricia A. Gober Financial Litigation Agents Sharmen M. Lett Sharon E. McLeod Kathleen Watkins COM: 216/ FAX: 216/ Gaynelle Coleman See FLU's Address 216/ USAOHN TALON

48 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) OH/SD 61 Clark Gregory G. Lockhart COM: 614/ FAX: 614/ See FLU's Address Two Nationwide Plaza 280 N. High St., 4th Floor Columbus, OH COM: 614/ FAX: 614/ Deborah Sanders Diane Heintzelman 614/ Financial Litigation Agent Cloteal Turner Betti Vance USAOHS TALON OK/ED 63 Gardner OK/ND 62 Gardner OK/WD 64 Ramsey OR 65 Clark Sheldon J. Sperling COM: 918/ FAX: 918/ W. Okmulgee Muskogee, OK COM: 918/ FAX: 918/ Cheryl Triplett 918/ Trina Waltman Darin Wood See FLU's Address 918/ USAOKE TALON David E. O Meilia COM: 918/ FAX: 918/ West 4 th Street, Suite 3460 Tulsa, OK COM: 918/ FAX: 918/ Phil Pinnell Becky Farmer 918/ Libbi Felty Financial Litigation Agent Ann L. Hankins Tiffany N. Harper Debra Overstreet See FLU's Address USAOKN TALON Robert G. McCampbell COM: 405/ FAX: 405/ West Park Ave., Suite 400 Oklahoma City, OK COM: 405/ FAX: 405/ Ron Pyle Kay Sewell Joe Higginbotham Financial Litigation Agents Denise Gibson Janet Holliday Eileen Ogilvie Terry Parsons See FLU's Address 405/ USAOKW TALON Michael W. Mosman COM: 503/ FAX: 503/ Mark O. Hatfield U.S. Courthouse 1000 SW Third Ave., Ste 600 Portland, OR s Robert D. Nesler 503/ Jerri Duarte Financial Litigation Agent Deb Hallen Sandy Wellman COM: 503/ FAX: 503/ Debbie Montano See FLU's Address 503/ USAOR TALON

49 16 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) PA/ED 66 Connors Patrick L. Meehan COM: 215/ FAX: 215/ Chestnut St., Suite 1250 Philadelphia, PA COM: 215/ FAX: 215/ John N. Joseph Joseph Minni Virginia R. Powel Dawn Ferrell Michelle Pushley 215/ Sup Financial Litigation Agent Julie A. Skinner Financial Litigation Agents Renee Austin Harriet Elliott Gloria Diaz Dayna Jackson Carolyn Purnell Linda Statham Nancy Vanace See FLU's Address USAPAE TALON PA/MD 67 Thomas A. Marino COM: 717/ FAX: 717/ P.O. Box 309 Scranton, PA William J. Nealon Fed. Bldg. Washington & Linden St 3 rd Fl. Scranton, PA J. Justin Blewitt, Jr. s Carroll Terruso Karen Musloski Ross Federal Building 3rd & Walnut Streets P.O. Box Harrisburg, PA COM: 570/ FAX: 570/ Warren Taldo 570/ USAPAM TALON PA/WD 68 Ross PR 69 Condon RI 70 Ross Mary Beth Buchanan COM: 412/ FAX: 412/ U.S. Post Off. & Crthse 7th Ave. & Grant Street Pittsburgh, PA COM: 412/ FAX: 412/ Michael C. Colville Ronald R. Galicic 412/ Financial Litigation Agent Eleanor A. Carr Gale D. Fonner Margret Pohuly (DynCorp) Xenia Vranefevich Gail Ward See FLU's Address USAPAW TALON Guillermo Gil U.S. Attorney COM: 787/ FAX: 809/ Fed. Office Bldg., Rm Carlos Chardon Avenue Hato Rey, PR s Rebecca Vargas-Vera 787/ Victor Rodriguez Financial Litigation Agents Edwin Benitez Valentin Diaz Wanda Gonzalez COM: 787/ FAX: 787/ Marilyn Benitez See FLU's Address 787/ USAPR TALON Margaret Curran COM: 401/ FAX: 401/ Fleet Center 50 Kennedy Plaza, 8th Floor Providence, RI Lisa Dinerman Michael P. Iannotti Sylvia S. Dulgarian Sandy Mascola COM: 401/ FAX: 401/ Troy Edwards See FLU's Address 401/ USARI TALON

50 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) SC 71 SD 73 Clark TN/ED 74 TN/MD 75 Clark TN/WD 76 J. Strom Thurmond, Jr. COM: 803/ FAX: 803/ / Main St., Suite 500 Columbia, SC COM: 803/ FAX: 803/ Henry D. Knight, Jr. Karen Martin 803/ Joyce L. Brooks Financial Litigation Agents Stephanie Jules Jeannette Munnett Christine Stone See FLU's Address USASC TALON James E. McMahon COM: 605/ FAX: 605/ P.O. Box 5073 Sioux Falls, SD Shriver Square, Suite Phillips Avenue Sioux Falls, SD Jan L. Holmgren Mary Dearborn Financial Litigation Agent Jan Walline COM: 605/ FAX: 605/ Joe Pfeiffer See FLU's Address 605/ USASD TALON Harry S. Mattice, Jr. COM: 865/ FAX: 865/ Market Street, Suite 211 Knoxville, TN COM: 865/ FAX: 865/ Betsy Tonkin Mike Beatty 865/ Paralegal Agent Donna K. Kidd Financial Litigation Agent Gail B. Holt Angie Kirby See FLU's Address USATNE TALON James K. Vines COM: 615/ FAX: 615/ th Avenue, South Suite A961 Nashville, TN Richard Clippard Angela K. Smith Financial Litigation Agent Cathy Sherrill COM: 615/ FAX: 615/ Brenda Keel See FLU's Address 615/ USATNM TALON Terrell L. Harris COM: 901/ FAX: 901/ Jefferson Ave. Suite 811 Memphis, TN COM: 901/ FAX: 901/ Monica Simmons Financial Litigation Agent Dranda Jones (DynCorp) Gloria Stephens Telicia Taylor 167 N. Main St. Wesley A. Flaherty Memphis, TN / USATNW TALON TX/ED 78 Matthew D. Orwig 110 N. College, Ste. 700 Tyler, TX Randi Davis Russell Rosie Trimble COM: 409/ FAX: 409/ Magnolia St., St.150 Beaumont, TX COM: 903/ FAX: 903/ Patricia Mullins 903/ Financial Litigation Agent Kathy Nash USATXE TALON

51 18 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) TX/ND 77 Ramsey Jane J. Boyle COM: 214/ FAX: 214/ U.S. Fed. Bldg. & Courthouse, 3rd Floor 1100 Commerce St. Dallas, TX Burnett Plaza Suite Cherry St. Fort Worth, TX COM: 817/ FAX: 817/ Mattie Peterson Compton Richard B. Vance Sup. Patrick Vincent Financial Litigation Agents Derenda Bailey George D. Beamon Michele Coomer Sue Meeks Karen Flores 817/ USATXN TALON TX/SD 79 Ramsey TX/WD 80 Ramsey UT 81 VT 82 Ross Michael T. Shelby COM: 713/ FAX: 713/ P.O. Box Houston, TX U.S. Courthouse 515 Rusk Houston, TX COM: 713/ FAX: 713/ Joe Mirsky Les Studer 713/ Debra Gregory Financial Litigation Agents Kimmy Logan Margie McQueen Osia Mitchell Jeanell Nero-Walker Brenda Williams Renee Zink See FLU's Address USATXS TALON/CLASS Johnny K. Sutton COM: 210/ FAX: 210/ NW Loop 410, Suite 600 San Antonio, TX COM: 210/ FAX: 210/ Harold O. Atkinson 210/ Patsy Ybarra Tina Travieso Financial Litigation Agents Mildred Alexander Barbara Dixon Martha Fowler (DynCorp) Maria McLaughlin Robin Sandin 210/ See FLU's Address USATXW TALON Paul M. Warner COM: 801/ FAX: 801/ South State, Suite 400 Salt Lake City, UT Jill Parrish 801/ Debbie N. Koga Financial Litigation Agent Corina C. Groneman Jody Nichols COM: 801/ FAX: 801/ Doug Adams See FLU's Address 801/ USAUT TALON Peter W. Hall COM: 802/ FAX: 802/ P.O. Box 570 Burlington, VT Elmwood Avenue, 3rd Fl. Burlington, VT Nancy J. Creswell Randee Bloomberg COM: 802/ FAX: 802/ Solveig Overby See FLU's Address 802/ USAVT TALON

52 FINANCIAL LITIGATION DIRECTORY May 24, DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) VI 94 Connors David M. Nissman U.S. Attorney COM: 340/ FAX: 340/ Fed. Bldg. & U.S. Courthouse 5500 Veterans Dr., Suite 260 Charlotte Amalie St. Thomas, VI Kim L. Chisholm Curtis V. Gomez Lori Cruz Financial Litigation Agent Loretta B. Bertrand COM: 340/ FAX: 340/ Daniel D. Leinenbach See FLU's Address 340/ USAVI TALON VA/ED 83 Paul J. McNulty World Trade Center 101 W. Main St, Suite 6500 Norfolk, VA Mark A. Exley Shirley G. Parks Ginger Swartworth COM: 703/ FAX: 703/ Jamieson Ave. Alexandria, VA COM: 757/ FAX: 757/ Financial Litigation Agents Deborah Chestnut Kim Gibson Brenda Lyles Darcel Sessoms Bill Chronister Deborah Vohringer 703/ USAVAE TALON VA/WD 84 Clark WA/ED 85 Koga WA/WD 86 Clark John L. Brownlee COM: 540/ FAX: 540/ P.O. Box 1709 Roanoke, VA Thomas B. Mason Building 105 Franklin Road, SW, St. 1 Roanoke, VA Thomas L. Eckert Peggy D. Wertz Financial Litigation Agents Erin Butterworth Nancy H. Withers COM: 540/ FAX: 540/ Deborah J. Lawless See FLU's Address 540/ USAVAW TALON James A. McDevitt COM: 509/ FAX: 509/ P.O. Box 1494 Spokane, WA W. Riverside, Suite 300 Spokane, WA Rolf H. Tangvald Carole DeLeon Financial Litigation Agent Kathy Fagyas COM: 509/ FAX: 509/ Debbie Hargreaves See FLU's Address 509/ USAWAE TALON John McKay COM: 206/ FAX: 206/ Union Street, Suite 5100 Seattle, WA COM: 206/ FAX: 206/ Anastasia D. Bartlett Sue Hooper 206/ Shelly Hiatt Financial Litigation Agents Lei Castillo Bonnie Walker See FLU's Address USAWAW TALON

53 20 May 24, 2002 FINANCIAL LITIGATION DIRECTORY DISTRICT & CODE FLPM UNITED STATES ATTORNEY Address & Telephone FINANCIAL LITIGATION UNIT LOCATION Address, Telephone & FAX AUSA FLU & SYSTEM CONTACTS FINANCIAL LITIGATION AGENTS ( - SYSTEM) WV/ND 87 Thomas E. Johnson COM: 304/ FAX: 304/ AWVN01 P.O. Box 190 Elkins, WV Federal Building, Rm rd St. Elkins, WV Rita R. Valdrini 304/ Diana L. Kreps Financial Litigation Agent Jerilyn C. Alderman 1100 Main St., Ste. 200 Wheeling, WV COM: 304/ FAX: 304/ Ramsey P.O. Box 591 Wheeling, WV Michael Malek 304/ USAWVN TALON WV/SD 88 Ramsey WI/ED 89 Clark WI/WD 90 Clark WY 91 Koga Karl K. Warner, II COM: 304/ FAX: 304/ P.O. Box 1713 Charleston, WV Virginia St. E., Suite 4000 Charleston, WV Gary L. Call Vicky Sylvester Financial Litigation Agents Patti Boley Marilyn Lynch COM: 304/ FAX: 304/ Mark Fleshman See FLU's Address 304/ USAWVS TALON Steven M.Biskupic COM: 414/ FAX: 414/ Federal Building 517 E. Wisconsin Avenue Milwaukee, WI Mel S. Johnson Mary Kay McSherry Financial Litigation Agent Coreen Johnson Jean Hutton Barbara Stormoen COM: 414/ FAX: 414/ Helen Evans See FLU's Address 414/ USAWIE TALON Grant C. Johnson U.S. Attorney COM: 608/ FAX: 608/ P.O. Box West Washington Ave. Suite 200 Madison, WI Heidi Luehring Tammy Duff Financial Litigation Agent Donna Hughes COM: 608/ FAX: 608/ Judith Holtz See FLU's Address 608/ USAWIW TALON Matthew H.Mead COM: 307/ FAX: 307/ P.O. Box 668 Cheyenne, WY J.C. O'Mahoney Fed. Bldg Capitol Ave. Rm 4002 Cheyenne, WY s Thomas D. Roberts Financial Litigation Agent Kathy Eckhardt COM: 307/ FAX: 307/ Edward Clark See FLU's Address 307/ USAWY TALON

54 FINANCIAL LITIGATION DIRECTORY May 24, EXECUTIVE OFFICE FINANCIAL LITIGATION STAFF Address / Telephone Financial Litigation Staff, EOUSA Bicentennial Building 600 E Street, N.W., Room 7600 Washington, D.C COM: 202/ FAX: 202/ USAEOUSA Darrell R. Curtis Exchange: Curtis, Darrell 185 South State, Suite 400 Salt Lake City, UT / FAX: 801/ EOUSA/Main Justice FAX: 202/ USAEOUSA FINANCIAL LITIGATION STAFF Laurie Levin, Assistant Director Brick Brewer, Attorney-Advisor Catherine Goodwin, Attorney-Advisor on Detail Darrell R. Curtis, Management Analyst Anna Evans, Program Manager Lucy Hurley, Program Analyst Judy Johnson, Management Analyst Patty Mayhew, Administrative Specialist Jeanne Montrese, Management Analyst George Rasmussen, Investigations Coordinator SUPPORT STAFF Tracy King Darlene Washington Secretaries FINANCIAL LITIGATION PROGRAM MANAGERS FLPM Clark IA/N USAIAN Condon NY/N USANYN Connors NJ USANJ Gardner AL/M USAALM Specialist / Telephone Address FLPM Debra Clark P.O. Box COM: 319/ FAX: 319/ Cedar Rapids, IA Paul Condon P.O. Box 7198 COM: 315/ FAX: 315/ South Clinton St. Syracuse, NY Kathleen M. Connors Federal Building, Rm Broad St. COM: 973/ Newark, NJ FAX: 973/ Antrena Gardner P.O. Box 197 Montgomery, AL COM: 334/ FAX: 334/ Vacant Koga UT USAUT Ramsey FL/M USAFLM Ross IN/S USAINS Ybarra TXW ATXW01 Specialist / Telephone Address Debbie Koga 185 S. State Street, Rm 400 Salt Lake City, UT COM: 801/ FAX: 801/ Janice Ramsey COM: 813/ FAX: 813/ Sue Ross COM: 317/ FAX: 317/ Park Tower Building 400 N. Tampa St., Rm Tampa, FL W. Market St., Suite 2100 Indianapolis, IN Patsy Ybarra 601 NW Loop 410, Ste 600 San Antonio, TX COM: 210/ FAX: 210/ Vacant PLEASE FAX/ CHANGES TO THIS DIRECTORY TO: FLU DIRECTORY ATTENTION: DARRELL R. CURTIS FAX: 801/ OR Exchange. USAUT.DCURTIS

55 APPENDIX F CERCLA BANKRUPTCY CONTACTS Office/Region Name Phone FAX Number HEADQUARTERS CONTACTS OECA-OSRE-RSD John Wheeler OECA-OSRE-PPED Bob Kenney OECA-NEIC Nancy Nibling OECA-ORE David Nielsen OGC-Waste Alan Carpien OGC-Claims David Lloyd REGIONAL CONTACTS I Eve Vaudo II Doug Fischer III Carlyn W. Prisk Tom Cisto IV Kevin Beswick V Roger Grimes (Rick Nagle) VI Terry Sykes VII Barbara Peterson VIII Andrea Madigan IX Lewis Maldonado X Ted Yackulic DEPARTMENT OF JUSTICE CONTACTS National Coordinator Alan Tenenbaum 6584 Regs 1 & 2 Henry Friedman Regs 3 & 8 David Street Regs 4 & 9 Jon Mueller Region 5 Randy Stone Region 6 Sam Blesi Regs 7 & 10 Wayne Ault AUSA-DE Ellen Slights x Department of Treasury Charlie Schwan (Financial Management) Mike Goodwin (Bureau of Public Debt) Steve Middlebrook (attorney) Department of Interior Triscilla Taylor U. S. Trustees Office Marti Davis (General Counsel) Joe Guzinski (Assistant Director)

56 APPENDIX G MODEL REFERRAL LETTER TO ACCOMPANY CCLR Certified Mail - Return Receipt Requested [Date] U.S. Department of Justice National Central Intake Facility Suite Bonifant St. Silver Spring, Maryland RE: [Name of Respondent(s)], [Address of Respondent(s)], [Referral for collection of administrative debt] By means of this letter, the United States Environmental Protection Agency Region ( EPA ) submits the attached Claims Collection Litigation Report (CCLR) referring for collection the above-referenced claim. [If referring a claim with multiple, joint and severally liable respondents, include the following: This claim involves multiple, joint and severally liable respondents. ] The claim arises from an administrative settlement EPA entered into with the respondent(s) [insert name(s)] under the authority found in section 122(h) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA). 1 Section 122(h) authorizes EPA to enter into administrative agreements with private parties for the recovery of costs EPA has incurred in responding to a release or threatened release of a hazardous substance. The settlement makes no determination as to respondent s alleged liability. Furthermore, section 122(h)(3) of CERCLA states that if a person fails to pay a claim settled under section 122(h) of CERCLA, EPA shall request that the Department of Justice bring a civil action to recover the amount of the claim (plus interest, costs and attorney s fees), and that in such an action the terms of the administrative settlement shall not be subject to judicial review. Under paragraph of the attached settlement, the respondent(s) [insert name(s)] agreed to pay EPA [insert dollar amount] on [insert due date, settlement will usually require payment within 30 days of the effective date of the agreement]. The respondent(s) failed to pay on the aforementioned due date. On [insert date(s)] EPA sent a [ Notice of Violation for Late Payment or dunning letter - if more than one dunning letter was sent, include dates of each letter] to the respondent(s) requesting payment on [insert due date(s)]. The respondent(s) have 1 42 U.S.C. 9622(h).

57 not complied with the [Notice or dunning letter(s)]. Under paragraph of the settlement, interest will continue to accrue [insert language found in the settlement, e.g., until payment is received. ]. [If applicable, include: In addition, stipulated penalties may accrue until payment is received based on the terms of the agreement.] Please find attached a completed CCLR, as well as a copy of the settlement and other supporting documentation. If you have any questions concerning this matter, please contact [name] at [telephone number]. Sincerely, [Name] [Title] [Office] Attachments cc: [Appropriate Regional Staff] 2

58 APPENDIX G INSTRUCTIONS FOR COMPLETING THE CLAIMS COLLECTION LITIGATION REPORT (CCLR) FOR SUM-CERTAIN ADMINISTRATIVE DEBTS Regions need to complete the CCLR for any sum-specific administrative debt where the principal amount is $1 million or less (excluding interest, costs, and penalties). EPA Regional offices should complete all appropriate boxes and send the completed form to DOJ s National Central Intake Facility (see CCLR Mailing Instructions below). Incomplete CCLRs will be returned to the Region. These instructions are keyed to the numbered blocks on the CCLR. 1. Agency Claim No.: Insert Site Spill ID No. Provide on the top of each page of the CCLR. 2. Date: Insert date CCLR is sent to DOJ s National Central Intake Facility. 3. To: Insert name and complete address of the AUSA and Federal Litigation Unit (FLU) responsible for the district where the debtor resides (please refer to the attached AUSA and FLU directory - Attachment 1). 4. From: Insert name and complete mailing address of the person who should receive correspondence in connection with the matter. 5. Debtor s Name and Address: If an individual is liable for the debt, insert first, middle, and last name, and full address of the primary individual (information on additional debtors can be provided in boxes 34-45). If a company is liable for the debt, insert the full name and primary address of the company. Please ignore directions on the CCLR regarding foreclosure. 6. Debtor s SSN/EIN: If an individual is liable for the debt, insert the individual's Social Security Number here. If a company is liable for the debt, insert the company's Employer Identification Number. If both an individual and a company are liable for the debt, insert both the individual s SSN and the company s EIN. If the SSN or EIN is unobtainable, insert unknown. 7. Default Date: Insert date debt was originally due. 1

59 8. SOL Expiration Date: In most cases, this will be six years from the default date. If the debt was the subject of dispute resolution, the expiration date is one year after the completion of dispute resolution, or six years after the default date, whichever comes later. Questions regarding the appropriate statute of limitations can be directed to the Office of Site Rememdiation Enforcement s Regional Support Division. 9. Basis for Expiration Date: The six year statute of limitations that will apply in most cases is discussed in 28 U.S.C (See #8 above) 10. Referred for: Insert X in box next to enforced collection. Leave 10a blank. If a debtor is in bankruptcy do not use CCLR (use a proof of claim referral to DOJ s Environmental Enforcement Section). 11. Amount of Claim: Insert principal amount in space (a), and interest due in space (b). Insert in the second line of space (b) the date through which the Region calculated interest due. Leave space (c) blank. Insert the calculation of applicable stipulated penalties, if any, in space (d). Also, note in space (d) the last date used for the calculation, as well as the rate at which stipulated penalties will continue to accrue under the terms of the settlement (e.g., $1000 per day). Total the amounts in spaces (a), (b), and (d) and put that amount in space (e). If the principal amount in space (a) is over $1 million do not use a CCLR; rather, refer the debt to the Department of Justice. 12. Annual Rate of Interest: Insert Superfund rate of interest as of the date of the referral. Also, state that the Superfund interest rate changes on October 1 st of each year. 13. Compromise Amount or %: Leave blank. 14. Basis of Claim: Insert X in box next to Claim not evidenced by note but by the following statute or regulation:, and write in see attached settlement in the blank. Attach a copy of the settlement, any DOJ approval letter (because the settlement contained a compromise at a site at which total response costs exceed $500,000, excluding interest, or because it was issued under AG authority), as well as the name of the DOJ attorney who handled the approval. If the settlement did not become effective until issuance of an EPA notice stating that public comments, if any, did not require modification of or withdrawal from the settlement, include copy of notice. 15. Agency Contact: Insert the name of Regional contact who can answer questions regarding the matter. This may be the same person found in box #4. 2

60 THE INDIVIDUAL DEBTOR 16. Debtor's Name: Insert primary individual debtor's full name. 17. AKA (Also Known As): Insert any other name(s) debtor is known to have used, including maiden name if applicable, and the name debtor used on the settlement if different from debtor s name in blocks 5 and 16. If no other names are known leave blank. 18. Date of Birth: If known or obtainable, insert debtor s date of birth. 19. Home phone number: If known or obtainable, insert debtor s home phone number with area code. 20. Employer: If known or obtainable, insert full name and address of all of debtor s employers. 21. Debtor s Job Title: If known or obtainable, insert debtor s job title/description. 22. Work Phone: If known or obtainable, insert debtor s work phone number with area code. 23. Salary: If known or obtainable, insert debtor s salary, and indicate whether gross or net and frequency paid. 24. Service Site: Insert full address where a summons or complaint can be personally served on debtor. A post office box cannot be served. 25. Verified By: Insert name of EPA employee who verified data provided in the CCLR. 26. Name: Insert full name of company debtor. THE CORPORATE DEBTOR 27. Address: Insert company debtor s complete address. 28. DBA: Insert any other name company debtor may use (this could be another name the company does business under). 29. Phone: Insert company debtor s phone number, including the area code. 30. Type of Business: Insert the form of debtor s business, such as, corporation, sole proprietorship, partnership, etc. If partnership, use CCLR Supplementary Data Sheet to list names and addresses of all partners. 31. Date and State of Incorporation: If known, insert date incorporated and state of 3

61 incorporation. 32. Service Agent: Insert name, phone number, and address of agent authorized to accept service of summons and complaint for debtor, if any. 33. Verification: Insert name and phone number of EPA employee who verified data included in the CCLR. CO-DEBTOR(S)/GUARANTOR(S)/CO-SIGNER(S) Cases with multiple, joint and severally liable debtors can be referred to the FLUs. Complete boxes 34-45, if applicable, for each debtor. Attach additional pages if needed. 34. Name(s): Insert full name(s) of any co-debtor(s) who may also be liable for this debt if you want DOJ/USAO to try to collect all or part of the debt from them. 35. SSN/EIN: If an individual is co-liable for the debt, insert the individual's Social Security Number here. If a company is co-liable for the debt, insert the company's Employer Identification Number. If both an individual and a company are co-liable for the debt, insert both the individual s SSN and the company s EIN. If the SSN or EIN is unobtainable insert unknown. 36. AKA (Also Known As): Insert any other name(s) co-debtor is known to have used, including maiden name if applicable, and the name co-debtor used on the settlement if different from co-debtor s name in blocks 5 and 16. If no other names are known, leave blank. 37. Date of Birth: If known or obtainable, insert co-debtor s date of birth. 38. Home phone number: If known or obtainable, insert co-debtor s home phone number with area code. 39. Employer: If known or obtainable, insert full name and address of all of co-debtor s employers. 40. Work Phone: If known or obtainable, insert co-debtor s work phone number with area code. 41. Debtor s Job Title: If known or obtainable, insert co-debtor s job title/description. 42. Salary: If known or obtainable, insert co-debtor s salary, and indicate whether gross or net and frequency paid. 43. Service Site: Insert full address where a summons or complaint can be personally served on co-debtor. A post office box cannot be served. 4

62 44. Basis of Liability: Write in see attached settlement in the blank. 45. Verified By: Insert name of EPA employee who verified data provided in the CCLR. FORECLOSURES The section of the CCLR on foreclosures is not applicable. Leave boxes blank. DEBTOR S ABILITY TO PAY 51. Property Interests: If known, insert data on any real estate or other property, such as cars, boats, etc., the debtor(s) and/or co-debtor s own or are buying. Include data on the value of the property, the county or counties in which it is located, any other liens, and what equity is available to satisfy the claim. 52. Assets: Insert data on any debtor assets in which the Government has a secured interest (i.e., CERCLA lien). 53. Other Assets: Insert data on any other assets that the Government might be able to attach to pay this claim, such as bank or credit union addresses and account numbers. AGENCY CLAIM HISTORY 54. Last Demand Date: Insert date of last demand on debtor to pay this claim and summary of the debtor s response to that demand. 55. Compromise: Insert details of any compromise or settlement offers made by, or to, the debtor and any responses to them. Attach any correspondence which provided the debtor the opportunity to discuss the debt with EPA (e.g., Notice of Violation for Late Payment, dunning letter). 56. Collection Actions Taken: Insert data on actions taken by the Region to collect on this claim. Note whether partial payment was made. If needed attach supplementary data sheet.

63 57. HHS Loans: Leave blank. ADDITIONAL INFORMATION 58. Additional Agency Comments: Insert any additional comments or information which might help locate the debtor and collect this claim. 59. Checklist: Check off boxes corresponding to CCLR, Certificate of Indebtedness, Original Notes or Other Evidence of Debt (i.e., the settlement), and Summary of Collection Actions taken by the Agency. If the Region has a credit report for the debtor, check the corresponding box and attach the report. Leave blank boxes pertaining to bankruptcy and foreclosure. CCLR SUPPLEMENTARY DATA SHEET - ANTICIPATED DEFENSES Use one supplementary data sheet to discuss anticipated defenses. Clearly title the page anticipated defenses and include the following discussion: Beyond any potentially applicable contract defenses, which do not normally arise as defenses to payment under CERCLA settlements, the only other basis for excusing the respondent s payment obligation is if the respondent can demonstrate that it currently does not have the financial ability to meet the obligation, nor will it in the foreseeable future. The respondent s liability under the statute is not at issue. In fact, the settling respondent(s) entered into the settlement to avoid a determination of their alleged liability. Therefore, it would be inappropriate for a party, at this juncture, to refuse to pay on the basis that it is not liable. Furthermore, section 122(h)(3) of CERCLA states that if a person fails to pay a claim settled under section 122(h) of CERCLA, EPA shall request that the Department of Justice bring a civil action in an appropriate district court to recover the amount of the claim (plus interest, costs and attorney s fees), and that in such an action the terms of the settlement shall not be subject to review. [If a party has raised an inability to pay defense, note that here and attach any supporting documentation (e.g., party s response to a CERCLA section 104(e) request for financial information). Also, provide the Region s analysis of the party s inability to pay claim.] Mail the completed CCLR to: U.S. Department of Justice National Central Intake Facility Suite Bonifant St. Silver Spring, MD CCLR MAILING INSTRUCTIONS

64 CLAIMS COLLECTION LITIGATION REPORT (CCLR) Page 1 of 7 1. Agency Claim No. 2. Date THE CLAIM AT A GLANCE 3. To: (Use Complete Address) 4. From: (Use Complete Address) 5. Debtor s Name & Address * (If a FORECLOSURE, Insert address of property here so claim will be referred to USAO where property is located.) 6. Debtor s SSN / EIN: 7. Default Date: 8. SOL Expiration Date 9. Basis for SOL Expiration Date: 10. Referred for: [ ] Enforced Collection [ ] Judgment Lien Only [ ] Renew Judgment Lien Only [ ]Renew Judgment Lien & Enforce Collection [ ] Program Enforcement [ ] Foreclosure Only [ ] Foreclosure & Deficiency Judgment [ ] File Proof of Claim Only Comments - [ ] Other - real property lien DOJ Concurrence for: [ ] Compromise (4 CFR 103) [ ] Suspension (4 CFR 104) [ ] Termination (4 CFR 105) 10a. DEBTOR IN BANKRUPTCY: Chapter: Unknown [ ] [ ] [ ] [ ] 14. Basis of Claim: [ ] Claim evidenced by note, guaranty, or surety obligation: OR [ ] Claim not evidenced by note but by the following statute or regulation; 11. Amount of Claim: a. Total Principal Due Total Interest Due Through 04/29/99 c. Total Administrative Charges Due d. Total Penalty Charges Due e. Total Amount of Claim 12. An Annual Rate Of Interest 13. Compromise Amount or % 15. Agency Contact: Name:... Phone No.:... (FTS and Commercial)

65 (CCLR) Page 2 of 7 Agency Claim No. THE INDIVIDUAL DEBTOR 16. Debtor s Full Name: 17. A.K.A.: 18. Date of Birth: 19. Home Phone No. (Include Area Code): 20. Employer s Name and Address: 21. Debtor s Job Title: 22. Work Phone No. (Include Area Code): 23. Debtor s Salary: $ [ ] Gross [ ] Weekly [ ] Monthly [ ] Net [ ] Biweekly [ ] Annually 24. Best place for Marshal to serve process by personal delivery: (Do NOT give P.O. Box) [ ] Home [ ] Work 25. Name of person who verified above data, date verified, and how verified: Other (Specify): THE COMPANY DEBTOR Note: If this claim is to collect a debt owed by an entity other than an individual person, such as a company, partnership, corporation, etc., additional information will be required. In such cases, insert the data called for in blocks below and use CCLR Supplementary Data Sheets to furnish additional information, as appropriate. 26. Debtor s Full Name: 27. Debtor s Address: 28. D.B.A.: 29. Phone No. (Include Area Code): 30. Type of Business: 31. Date & State of Incorporation:

66 (CCLR) Page 3 of 7 Agency Claim No. 32. Name, Address & Phone Number (Include Area Code) of Service Agent: 33. Name of person who verified above company debtor data, date verified, and how verified: CO-DEBTOR(S)/GUARANTOR(S)/CO-SIGNER(S) 34. Full Name(s): 35. SSN / EIN: 36. A.K.A.: 37. Date of Birth: 38. Home Address/Business & Phone No. (Include Area Code) 39. Employer s Name & Address: 40. Work Phone No. (Include Area Code): 43. Best place for Marshal to serve process by personal delivery: (Do NOT give P.O. Box) [ ] Home [ ] Work 41. Co-Debtor s Job Title: Other (Specify): 42. Salary: $ [ ] Gross [ ] Weekly [ ] Monthly [ ] Net [ ] Biweekly [ ] Annually 44. Basis of Liability: 45. Name of person who verified above data on codebtor(s)/guarantor(s)/co-signer(s), date verified, and how verified:

67 (CCLR) Page 4 of 7 Agency Claim No. FORECLOSURES Note: If this claim is referred for foreclosure only or foreclosure and a deficiency judgment, the following additional data will be required. In such cases, insert the date called for in blocks below and use CCLR Supplementary Data Sheets to furnish additional information, as appropriate. 46. Debtor s Address: 47. Mortgage Recording Information: County Date of Recording Volume (Liber) Property Occupancy: Debtor Resides on Property: Yes [ ] No [ ] Page Number (Folio) If recovery of chattels is included in the foreclosure, list the chattels here and provide more detailed information on the CCLR Supplementary Data Sheet: Property is Abandoned: Yes [ ] No [ ] Property is occupied by tenant: Yes [ ] No [ ] 50. List other Federal liens against property: DEBTOR S ABILITY TO PAY 51. The debtor/co-debtor owns or is buying the following real estate or other property (cars, boats, etc.): 52. Assets in which the Government has a secured interest: 53. Other Assets: (savings/checking accounts, provide bank and/or credit union name(s) and address(s) and account number(s); deceased debtor s estate, provide administrator/executor information; other sources of income): NAME OF BANK ACCOUNT NUMBER ACCOUNT TYPE

68 (CCLR) Page 5 of 7 Agency Claim No. AGENCY CLAIM HISTORY 54. Date of last demand for payment to debtor and summary of debtor s response: Company default and no longer during business 55. Details of any compromise or settlement offers made by, or to, the debtor and any responses thereto: 56. Summary of collection actions taken by agency: 57. For HHS loans: Medical or other professional association locator data: ADDITIONAL INFORMATION 58. Additional agency comments: 59. AGENCY CHECK LIST: CCLR package must contain: In General: [ ] CCLR [ ] Certificate of Indebtedness [ ] Credit Report [ ] Payment History, if any [ ] Original Notes or Other Evidence of Debt, Including Assignments, If Any [ ] Summary of Collection Actions Taken by Agency Debtor in Bankruptcy: [ ] Proof of Claim, or Copy Thereof, Attached For Foreclosures: [ ] CCLR [ ] Credit Report [ ] Original Promissory Note [ ] Original Real Estate Mortgage [ ] Original Statement of Account/Affidavit of Amount Due [ ] Title Evidence, If Available [ ] Directions to Property If No Street Address Available [ ] Chattel Lien Searches If Chattels Involved

69 (CCLR) Page 6 of 7 Agency Claim No. CCLR SUPPLEMENTARY DATA SHEET Use this sheet to provide any additional information that might help locate those from whom the claim might be collected and any assets that might be available to satisfy a judgment in favor of the United States. Please indicate the number(s) of the block(s) on the CCLR that any additional data is intended to supplement.

70 (CCLR) Page 7 of 7 Agency Claim No. ACKNOWLEDGMENT FORM (FOLD HERE) DOJ/USAO ACKNOWLEDGMENT TO AGENCY 60. Debtor s Full Name: 61. Agency Claim No.: DOJ/USAO Number: Received at DOJ/USAO on: Received at DOJ/USAO by:... (Print Name) 65. Questions? Contact:... (Print Name & Phone Number (Include Area Code) of DOJ/USAO Contact) (FOLD HERE) FILL IN WITH EPA CONTACT AND RETURN ADDRESS

71 APPENDIX H CONTENT OF REFERRAL TO DOJ FOR COLLECTION OF DELINQUENT DEBTS UNDER CERCLA JUDICIAL AND ADMINISTRATIVE SETTLEMENTS I. FAILURE TO PAY AMOUNT DUE UNDER JUDICIAL CONSENT DECREE A. FAILURE TO PAY SUM CERTAIN DUE ON A DATE CERTAIN (i.e., past cost payment or cashout payment). Under a judicial consent decree, a delinquency of a sum certain payment due on a date certain will trigger enforcement and collection efforts by the AUSA without further notice from EPA. No referral is needed, however, follow-up with the AUSA might be necessary. B. FAILURE TO PAY FUTURE RESPONSE COST BILL UPON DEMAND BY EPA. A Collection Referral for Nonpayment of CERCLA Future Response Cost Due under Judicial Consent Decree is needed from the EPA Regional Administrator (or his/her delegatee) to the Assistant Attorney General, Environment and Natural Resources Division, or his/her delegatee ( DOJ-ENRD ) containing the following information and documents: 1. Background Information a. Case name b. Site name and location c. DOJ case number d. Type (example: CERCLA 106/107 RD/RA) and date of entry of CD that created obligation to pay e. Name of DOJ attorney assigned to CD f. Name and telephone number of Regional attorney g. Name and current address of Settling Defendant debtor(s) who has/have failed to pay h. Statement of CD payment violation (example: Failure to pay $250,000 future response costs bill upon demand by EPA) i. Copy of CD

72 2. Summary of Collection Efforts to Date a. State that the collection process set forth in the CD has been followed by EPA and that the Settling Defendant(s) have had the opportunity to pursue any administrative remedies (dispute resolution) provided by the CD, including whether the Settling Defendant(s) have been in contact with EPA. Cross-reference relevant CD Sections/Paragraphs (e.g., Definitions, Reimbursement of Response Costs, Dispute Resolution, Stipulated Penalties). Attach, if applicable: 1. Dated copy and proof of receipt of EPA s demand for future response costs with attachments (generally the standard, Regionally-prepared cost summary and, if applicable, the standard DOJ-prepared cost summary) 2. Copy of Settling Defendant(s) written objection to payment 3. Copy of transmittal letter and check accompanying Settling Defendant(s) payment of uncontested costs 4. Copy of correspondence that established and funded an interest-bearing escrow account for contested costs 5. Copy of Settling Defendant(s) invocation of dispute resolution 6. Documents generated during informal dispute resolution 7. Documents generated during formal dispute resolution, including, as applicable, Settling Defendant(s) invocation of formal dispute resolution, Settling Defendant(s) and EPA s Statements of Position, and EPA s final decision b. State if additional collection efforts, beyond those required by the CD, have been made by EPA. Attach, if applicable: 1. Dated copy and proof of receipt of any EPA written communication to Settling Defendant(s) (e.g., Notice of Noncompliance) concerning failure to pay amount demanded 2. Dated copy and proof of receipt of EPA demand for stipulated penalties 3. Copy of any additional documentation for disputed costs that has already been provided to Settling Defendant(s) 4. Copy of written (and summary of any telephone) responses by Settling Defendant(s) 3. Anticipated Defenses State any defenses to payment that have or may be asserted by Settling Defendant(s). (If covered by previous section, use cross-reference.) 2

73 4. Assets and Income of Debtor(s) If the Region has no reason to believe that Settling Defendant(s) has/have an inability to pay, state that conclusion. If a Settling Defendant has claimed an inability to pay the amount owed, or if the Region is otherwise aware that a Settling Defendant may have an inability to pay, include any information received by EPA in response to a CERCLA 104(e) request for financial information, or from other sources (e.g., Dunn and Bradstreet reports). 5. Relief Sought State relief sought. This generally will include the amount of future response costs demanded, plus interest running from the date of the demand until the date of payment at the rate specified by the CD. This may also include payment of stipulated penalties. If stipulated penalties are sought, include suggested amount and justification. (If any additional causes of action are included, such as statutory civil penalties or collection of response costs beyond those required to be paid by the CD, evidence necessary to prove the elements of those causes of action must be provided.) II. FAILURE TO PAY AMOUNT DUE UNDER ADMINISTRATIVE ORDER ON CONSENT OR ADMINISTRATIVE AGREEMENT A. FAILURE TO PAY SUM CERTAIN $1 MILLION OR LESS DUE ON A DATE CERTAIN. For sum certain debts where the principal amount due is $1 million or less (excluding interest, costs, and stipulated penalties), the referral should be sent to the U.S. Department of Justice, National Central Intake Facility, Suite 220, 1110 Bonifant St., Silver Spring, Maryland, , which will transmit the referral to the appropriate United States Attorney Office Financial Litigation Unit. The referral will consist of filling out a Claim Collection Litigation Report (CCLR). A CCLR with instructions on how to complete the form are separately attached (See Attachment 5), along with a model referral letter (See Attachment 4). B. FAILURE TO PAY SUM CERTAIN OVER $1 MILLION DUE ON A DATE CERTAIN (i.e., past cost payment or cashout payment). A Collection Referral for Nonpayment of CERCLA Administrative [Past/Cashout] Response Costs Due under Administrative [Order on Consent/Agreement] is needed from the EPA Regional Administrator (or his/her delegatee). For sum certain debts where the principal amount due is greater than $1 million (excluding interest, costs, and stipulated penalties), the referral should be sent to the DOJ-ENRD). The referral should contain the following information and documents: 1. Background Information 3

74 a. Site name and location b. Type (examples: CERCLA 106/122 Removal AOC; CERCLA 104/122 RI/FS AOC; CERCLA 122(h) Agreement) and effective date of AOC/Agreement creating obligation to pay c. EPA Docket Number of AOC/Agreement d. If AOC/Agreement was approved by DOJ prior to issuance (because it contained a compromise at a site where total response costs exceed $500,000, excluding interest, or because it was issued under AG authority), then provide a copy of DOJ approval letter and name of DOJ attorney who handled the approval e. Name and telephone number of Regional attorney f. Name and current address of Respondent debtor(s) who has/have failed to pay g. Statement of AOC/Agreement payment violation (example: Failure to pay negotiated amount of [past/cashout] response costs as required by AOC/Agreement) h. Copy of AOC/Agreement i. If AOC/Agreement did not become effective until issuance of an EPA notice stating that public comments, if any, did not require modification of or withdrawal from the settlement, then include copy of notice 2. Summary of Collection Efforts to Date a. State that the collection process set forth in the AOC/Agreement has been followed by EPA and that the AOC/Agreement did not contain any process for disputing the amount owed (because it was a negotiated sum certain). Cross-reference relevant Sections/Paragraphs of the AOC/Agreement (e.g., Reimbursement of Response Costs, Stipulated Penalties). State that Respondent has failed to make payment as required by the terms of the AOC/Agreement. b. State if additional collection efforts, beyond those required by the AOC/Agreement, have been made by EPA. Attach, if applicable: 1. Dated copy and proof of receipt of any EPA communication to Respondent(s) (e.g., Notice of Noncompliance) concerning failure to pay amount demanded 2. Dated copy and proof of receipt of EPA demand for stipulated penalties 3. Copy of any additional documentation for disputed costs that has already been provided to Respondent(s) 4. Copy of written (and summary of any telephone) responses by Respondent(s) 3. Anticipated Defenses State any defenses to payment that have or may be asserted by Respondent(s). (If covered by previous section, use cross-reference.) 4. Assets and Income of Debtor(s) If the Region has no reason to believe that Respondent(s) has/have an inability to pay, state that 4

75 conclusion. If a Respondent has claimed an inability to pay the amount owed, or if the Region is otherwise aware that a Respondent may have an inability to pay, include information received by EPA in response to a CERCLA 104(e) request for financial information, or from other sources (e.g., Dunn and Bradstreet reports). 5. Relief Sought State relief sought. This generally will include the amount of [past/cashout] costs required to be paid by the AOC/Agreement, plus interest running from the due date under the AOC/Agreement until the date of payment at the rate specified by the AOC/Agreement. This may also include payment of stipulated penalties. If stipulated penalties are sought, include suggested amount and justification. (If any additional causes of action are included, such as statutory civil penalties or collection of response costs beyond those required to be paid by the AOC/Agreement, evidence necessary to prove the elements of those causes of action must be provided.). C. FAILURE TO PAY FUTURE RESPONSE COST BILL UPON DEMAND BY EPA. A Collection Referral for Nonpayment of CERCLA Future Response Cost Due under Administrative [Order on Consent/Agreement] is needed from the EPA Regional Administrator (or his/her delegatee) to the DOJ-ENRD containing the following information and documents: 1. Background Information a. Site name and location b. Type (examples: CERCLA 106/122 Removal AOC, CERCLA 104/122 RI/FS AOC, or CERCLA 122(h) Agreement) and effective date of AOC/Agreement creating obligation to pay c. EPA Docket Number of AOC/Agreement d. If AOC/Agreement was approved by DOJ prior to issuance (because it contained a compromise at a site at which total response costs exceed $500,000, excluding interest, or because it was issued under AG authority), then provide a copy of DOJ approval and name of DOJ attorney who handled the approval e. Name and telephone number of Regional attorney f. Name and current address of Respondent(s) who has/have failed to pay g. Statement of AOC/Agreement payment violation (example: Failure to pay $250,000 future response costs bill upon demand by EPA) h. Copy of AOC/Agreement i. If AOC/Agreement did not become effective until issuance of an EPA notice stating that public comments, if any, did not require modification of or withdrawal from the settlement, then include copy of notice 2. Summary of Collection Efforts to Date a. State that the collection process set forth in the AOC/Agreement has been followed by EPA and that Respondent(s) have had the opportunity to pursue any administrative remedies 5

76 (dispute resolution) provided by the AOC/Agreement. Cross-reference relevant AOC/Agreement Sections/Paragraphs (e.g., Definitions, Reimbursement of Response Costs, Dispute Resolution, Stipulated Penalties). Attach, if applicable: 1. Dated copy and proof of receipt of EPA s demand for future response costs with attachments (generally the standard, Regionally-prepared cost summary and, if applicable, the standard DOJ-prepared cost summary) 2. Copy of Respondent(s) written objection to payment 3. Copy of transmittal letter and check accompanying Respondent(s) payment of uncontested costs 4. Copy of correspondence that established and funded an interest-bearing escrow account for contested costs 5. Copy of Respondent(s) invocation of dispute resolution 6. Documents generated during informal dispute resolution 7. Documents generated during formal dispute resolution, including, as applicable, Respondent(s) invocation of formal dispute resolution, Respondent(s) and EPA s Statements of Position, and EPA s final decision b. State if additional collection efforts, beyond those required by the AOC/Agreement, have been made by EPA. Attach, if applicable: 1. Dated copy and proof of receipt of any EPA communication to Respondent(s) (e.g., Notice of Noncompliance) concerning failure to pay amount demanded 2. Dated copy and proof of receipt of EPA demand for stipulated penalties 3. Copy of any additional documentation for disputed costs that has already been provided to Respondent(s) 4. Copy of written (and summary of any telephone) responses by Respondent(s) 3. Anticipated Defenses State any defenses to payment that have or may be asserted by Respondent(s). (If covered by previous section, use cross-reference.) 4. Assets and Income of Debtor(s) If the Region has no reason to believe that Respondent(s) has/have an inability to pay, state that conclusion. If a Respondent has claimed an inability to pay the amount owed, or if the Region is otherwise aware that a Respondent may have an inability to pay, include information received by EPA in response to a CERCLA 104(e) request for financial information, or from other sources (e.g., Dunn and Bradstreet reports). 5. Relief Sought State relief sought. This generally will include the amount of future response costs demanded, plus interest running from the date of the demand until the date of payment at the rate specified by the AOC/Agreement. This may also include payment of stipulated penalties. If stipulated 6

77 penalties are sought, include suggested amount and justification. (If any additional causes of action are included, such as statutory civil penalties or collection of response costs beyond those required to be paid by the AOC/Agreement, evidence necessary to prove the elements of those causes of action must be provided.) 7

78 [Regional Letterhead] APPENDIX I MODEL FUTURE RESPONSE COST BILL CERTIFIED MAIL RETURN RECEIPT REQUESTED [Date] [Addressee] RE: [ Site ("Site")], [Location]: [Administrative Order/Consent Decree/122(h) Agreement, EPA Docket No. /Civil Action No. - ] Dear Sir and Madam: The enclosed [invoice/bill] is submitted to you by the U.S. Environmental Protection Agency (EPA) for payment of the costs outlined herein. This [invoice/bill] includes an/a [accounting/statement] of the Future Response Costs 1 incurred by EPA [and the Department of Justice, on behalf of EPA,] for activities performed under the authority of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA). This [invoice/bill] is solely for the recovery of EPA's [and DOJ s] Future Response Costs, including any accrued interest, for the [Site Name]. Any fines and/or penalties due will be billed separately. EPA requests payment of the Future Response Costs contained in the enclosed [invoice/bill]. These Future Response Costs are recoverable from [Name of respondent/settling parties] pursuant to the provisions of the [Administrative Order/Consent Decree/122(h) Agreement, EPA Docket No. /Civil Action No. - ], Section [...] (Reimbursement of Response Costs). As required by the [Administrative Order/Consent Decree/122(h) Agreement], attached to the enclosed [invoice/bill] is a Regionally Prepared Cost Summary Report entitled, "Future Response Costs [date] to [date]" dated [insert date of summary report]. 2 The report provides an/a [accounting/statement] of the Future Response Costs incurred by the [EPA/United States] in connection with the [Site Name] for which it seeks reimbursement. 1 Future Response Costs refers to the definition as defined in EPA model agreements, please refer to the specific agreement for the proper characterization of costs. 2 EPA model language uses the term Regionally Prepared Cost Summary (See e.g., Section XVI, 55, of the Model RD/RA Agreement). However, the language of a specific agreement may vary from model language.

79 The stated amount of $... is due to be paid [on or before [Date]] or [within XXXX days of your receipt of this bill]. Please review and adhere to all procedures and requirements, as specified in the [Administrative Order/Consent Decree/122(h) Agreement], for making payment. Failure to pay the [invoice/bill] can subject you to an enforcement action [and penalties]. If you dispute any costs contained in the [invoice/bill], Section [...] of the [Administrative Order/Consent Decree/122(h) Agreement] requires the [settling defendant/respondent] to: (1) notify EPA of the dispute within thirty (30) days of receipt of the [invoice/bill]; (2) deposit any disputed amounts into an interest bearing escrow account; and (3) pay undisputed amounts to EPA. 3 Please make your check payable to: Forward your payment to: EPA-Hazardous Substance Superfund EPA Region [...] Superfund Accounting [Address for Regional Financial Group] [If express mail or a messenger service will be used to deliver your payment, the street address of our bank is below: [Environmental Protection Agency [R ] [Address of Bank]] To enable EPA to accurately record receipt of your payment by the established due date, the following information must be included on the face of your payment check: [Site Name/Location: Site Identification No.: Account Number: Receivable Account Number: EPA Docket No. /Civil Action: No. - ] Interest will accrue at the current rate of [...%] on any amounts unpaid by the due date as stated in the [Administrative Order/Consent Decree/122(h) Agreement], Section [...] (Reimbursement Response Costs). Failure to comply with the requirements of the reimbursement section may subject you to stipulated penalties as outlined in Section [...] [(Stipulated Penalties)] of the [Administrative Order/Consent Decree/122(h) Agreement]. Noncompliance will result in further collection efforts, which may include referral of the debt to the Department of Justice. 3 This is model language, please refer to the specific language in the agreement. 2

80 If you have any questions or problems regarding this [invoice/bill] should be directed to: [Name of Agency Official] U.S. Environmental Protection Agency (Mail Code) [Regional Address] Thank you for your cooperation. Enclosures cc: [Financial Management Officer, U.S. EPA, Region ] [Assistant ORC/Legal Enforcement Staff] [DOJ Assistant Section Chief] [Cost recovery/superfund program staff] Sincerely, [Name of Agency Official] [Title] [EPA Office]

81 [INVOICE/BILL] FOR COLLECTION To: Re: [Name] [Address] BD Number: Description of Bill: Recovery of Future Response Costs from [Date] to [Date] at the [Name of Site] pursuant to the [Administrative Order/Consent Decree/122(h) Agreement, EPA Docket No. /Civil Action No. - ], Section,, (Reimbursement of Response Costs). A Narrative Cost Summary Report is attached. Payment Due Date: [Date] BD Number: Date: Amount: Total: Please forward your payment to: EPA Region [...] Superfund Accounting [Address for Regional Financial Group] Interest will be assessed at the rate of [...%] on any amounts unpaid by the due date specified above. Please review and adhere to all procedures and requirements, as specified in Section [...] (Reimbursement of Response Costs) for making payment and/or for disputing all or part of the costs contained in the cost summary. 4

82 [REGIONALLY PREPARED COST SUMMARY REPORT] (SCORPIOS Summary Report) 5

83 U.S. ENVIRONMENTAL PROTECTION AGENCY REGION [ ] (Date) {Sample} MEMORANDUM SUBJECT: FROM: TO: XYZ Site (SSID XX) Person Responsible for Initiating Annual Bills Best Person to Review Costs (e.g., RPM/OSC) The attached Planning Form, Documentation Checklist and un-certified cost summary are the initial step in the annual billing for the period on the Planning Form. Please complete the Planning Form by: 1. Carefully reviewing the cost summary to ensure all billable costs are identified (use the Documentation Checklist to indicate what costs may be missing from the summary). 2. Checking that the various costs on the summary report are recoverable as oversight costs in accordance with the applicable Order or Decree. The Total Site Costs shown on the attached cost summary are an estimate only and may be different than the actual amount that will be billed. We anticipate sending the bill for these costs about three months after you return the attached documents to us. Thanks for your help. If you have questions, please ask. To keep this bill on track for timely issuance, please return the audited cost summary and completed Planning Form to me by (insert date).

84 {Sample} CERCLA COST RECOVERY BILLING PLANNING FORM Date Submitted to Finance: Submitted by: Site ID, Name: CERCLIS #: RPM/OSC: ORC Contact: Phone: Phone: Planned Cost Recovery Activity (mark applicable boxes) 9 Case in Litigation 9 Planned 107 Referral 9 Planned RD/RA Negotiations 9 Annual Billing 9 Cost Recovery Negotiations (i.e., Rmvl, RI/FS, SNL, Demand Letter) 9 State Superfund Contract Billing 9 Other (specify): Planning Information Demand Letter(s) or SNL(s) for a specified amount were issued on (dates): Calculate Prejudgement Interest from (M/D/Y): through (M/D/Y): Do past cost recovery collections need to be addressed? Y N Anything unusual about this site or past cost recovery action that may affect this planned cost recovery activity? Specify: Cost Documentation Requested Period: From (M/D/Y): To (M/D/Y): Date Documentation Required: 9 Certified Cost Summary (allow 6 weeks) 9 Financial Documents (allow 6 weeks) 9 Work Performed Documents (allow 12 weeks) 1

85 {Sample} CERCLA COST RECOVERY BILLING DOCUMENTATION CHECKLIST Please review the attached SCORE$ cost summary. The following contract type costs and/or IAG costs may be applicable for this site during the requested time period. For any contractor or IAG agency not appearing on the attached summary, please provide sufficient information below about the contractor or inter-agency (name, contract number, delivery order, etc.) to identify the costs that should be included in the cost summary. CONTRACTS ARCS Alternative Remedial Contract Support CLP Contract Lab Program (VIAR) EERU Environmental Emergency Response Unit EMSL Environmental Monitoring Systems Laboratory (Lockheed) ERCS Emergency Removal Cleanup Services ESAT ENVIRONMENTAL SERVICES ASSISTANCE TEAM ESS Enforcement Support Services FIT Field Investigation Team PRP Potentially Responsible Party (Search) RACS Remedial Action Contract Strategy REM Remedial ROC Regional Oversight Contract START Superfund Technical Assistance Response Team SCA State Cooperative Agreement TAG Technical Assistance Grant TAT Technical Assistance Team TES Technical Enforcement Support INTER-AGENCY AGREEMENTS ATSDR DOI DOJ DOT/USCG FEMA NOAA USCOE/ACOE Agency for Toxic Substance and Disease Registry Department of Interior Department of Justice U. S. Coast Guard Federal Emergency Management Agency National Oceanic and Atmospheric Administration U. S. Army Corps of Engineers Additional contractor/inter-agency information specific to this site: 2

86 APPENDIX J Chronological List of Selected Superfund Accounts Receivable Documents Date Title Subject 1992 Memorandum of Understanding Between the United States Environmental Protection Agency and the United States Department of Justice on Procedures for Remittance of Superfund Debts through the Department of Justice Lockbox System, February 13, Plan for Achieving Timely Achieving Oversight Billing, OCFO, OSRE (April 7, 1998) Establishes procedures for the collection and payment of certain Superfund response costs and penalties through the Department of Justice Lockbox system Establishes EPA goals to become current in oversight billing 1998 Effective Debt Management, OECA (July 16, 1998) Identifies delays caused by untimely responses to financial management inquiries regarding accounts receivable and reminds Regional Counsel of the need for timely and accurate responses 2000 Reporting and Tracking Superfund Accounts Receivable, OCFO Comptroller Transmittal #00-05, (Jan. 11, 2000) 2000 Improving Superfund Fiscal Management, Accounting and Cost Recovery, OECA, OSWER, OCFO (Sept. 29, 2000) 2000 Delinquent Accounts Receivable: Interim Guidance on the Referral Process and Timing for Collection of Delinquent Debts Arising under Superfund Judicial or Administrative Settlements, OSRE, OCFO (Apr. 6, 2000) 2001 Implementation of the pilot Senior Resource Official Performance Measure on Superfund Debt Collection, OSRE, OCFO (Sept. 25, 2001) 2001 Compromise and Termination of Collection Activity of Debts Arising out of Superfund Judicial and Administrative Settlements and Judgments (Post-Settlement and Post Judgment Superfund Debts), OSRE, OCFO, DOJ-ENRD (Oct. 2, 2001) 2002 CERCLA Future Response Costs: Settlement, Billing and Collection, OSRE-RSD (June 20, 2002) Provides updates in the area of Superfund accounts receivable management (i.e., UAOs, AOCs) Prioritizes Superfund s cost recovery and accounting practices Established interim guidance on referring delinquent Superfund Accounts (superceded by this guidance) Established pilot performance measure regarding Superfund debt collection Discusses the legal authority and process to compromise and terminate collection activity on debts arising out of Superfund settlements and judgments Addresses some of the most common issues that arise with the billing and collection of future response costs